Four regional rural banks record growth in net profit

Four of the five Regional Rural Banks (RRB) in Orissa have recorded growth in their net profit in the last fiscal.

These RRBs include Rushikulya Regional Bank (RGB), Baitarani Gramya Bank (BGB), Utkal Gramya Bank (UGB) and Neelachal Gramya Bank (NGB).

However, Kalinga Gramya Bank (KGB) sponsored by the UCO bank ended 2008-09 with a loss of Rs 18.96 lakh. RGB sponsored by the Hyderabad-based Andhra Bank is the only RRB in the state which has wiped out its accumulated losses and attained sustainable viability since 2002-03, said official sources.

The balance sheets of remaining four RRBs showed accumulated losses by the end of 2008-09. Bank of India (BoI) sponsored BGB has registered a net profit of about Rs 5.09 crore by the end of March 31, 2009 as against Rs 3.08 crore in 2007-08. Indian Overseas Bank (IOB) sponsored NGB recorded a net profit of Rs 4.16 crore, compared to Rs 1.48 crore in 2007-08.

UGB sponsored by the State Bank of India (SBI) ended 2008-09 with a profit after tax of Rs 9.07 crore compared to Rs 4.31 crore in 2007-08.

Similarly, RGB sponsored by the Andhra Bank clocked a net profit of Rs 1.01 crore in 2008-09 as against Rs 30.36 lakh in 2007-08. KGB, however, recorded a loss of Rs 18.96 lakh in 2008-09, sources added.