Andhra Bank Clocks Profit Of Rs 121 Crore

Andhra Bank will computerise its 700 branches by June next year, its chairman and managing director B Vasanthan said. The bank will install 100 more ATMs throughout the country and all the ATMs will be interconnected.

He said the bank has no immediate plans to foray into Internet banking since the rate of Internet penetration is low in India. There is a downward trend in the usage of Internet banking facilities as computer literacy is low in rural areas, Vasanthan added.

Andhra Bank will concentrate more on the rural sector and retail banking will be strengthened.

Meanwhile, the bank improved its net profit to 121.19 crore (Rs 120.59 crore) during the last fiscal and declared a 10 per cent dividend. Its NPA level is at 2.95 per cent. Vasanthan said that, in spite of the disbursal of Rs 75 crore under the VRS scheme, the bank's performance was commendable. The initial public offer of the bank was oversubscribed 2.56 times and raised Rs 150 crore equity capital in February this year.

The bank has drawn out an ambitious action plan for the current fiscal. It aims to achieve a total business of over Rs 30,000 crore by the end of March 2002. It hopes to lend at least Rs 500 crore to the retail trade during the current year.

Vasanthan told mediapersons here that the bank will shortly organise meetings of retail traders to explain the details of retail lending.

The bank intends to issue 1.5 lakh cards under the 'Andhra Bank Pattabhi Agricard scheme', disburse Rs 200 crore under housing loans and Rs 100 crore under educational loan scheme. He also said the bank will achieve 90 per cent computerisation within 2-3 years with inter city connectivity and introduction of new IT-based services. It will open seven more branches in Kerala.