Deccan Grameen Bank to open 20 branches

Deccan Grameen Bank (DGB), a regional rural bank sponsored by State Bank of Hyderabad, would add 20 branches in 2010-11 to serve the urban poor. Of this, 10 branches would come up in Hyderabad.

The bank would also recruit officer level personnel during the year, said DGB chairman SB Roy while announcing that all its 215 branches were under core banking solution.

Earlier, State Bank of Hyderabad managing director Renu Challu said DGB rescheduled Rs 80 crore kharif 2009 loans due to drought.

DGB’s total business was around Rs 3,645 crore comprising Rs 2,121 crore deposits and Rs 1,524 crore advances. The bank earned a profit of Rs 42.48 crore till December end and was hopeful of touching Rs 50 crore by March end. Gross non-performing assets (NPAs) stood at 1.15 per cent (Rs 17.5 crore). It did not have any net NPAs, she told the media.

Challu said DGB had opened 407,000 no-frill accounts and brought 81,030 families out of the clutches of money lenders through its debt swap scheme. It had adopted the business correspondent model for serving the areas where it did not have branch.

SBH to get capital infusion

SBH would get some capital infusion from the parent bank — State Bank of India — to maintain the required capital adequacy ratio, Challu said without quantifying it.

She said net interest margins would be under pressure in the ensuing year due to the tightening of norms by the Reserve Bank of India. Also, profits from treasury operations would fall when deposit rates rise. The liquidity position would also come under pressure. There might be further tightening by the RBI, she said.