Syndicate Bank to raise more capital

Manipal-based public sector lender, Syndicate Bank, is aiming at garnering a total business of Rs 40,000 crore from Andhra Pradesh in the current financial year, as against Rs 30,000 crore achieved last year, according to executive director M Anjaneya Prasad.

“Our growth in Andhra Pradesh is not at par with the state’s growth, and the real market share is yet to come to the fore. Our focus is now on scaling up our branch network in the state to trigger the targeted growth,” he told reporters here on Monday.

The bank presently has less than 5 per cent market share in Andhra Pradesh with Anantpur, Kadapa and Kurnool districts being the biggest market. Of its network of 2,700 branches, Andhra Pradesh stands second with 419 branches, next only to Karnataka, the home state for the bank. The bank’s CD (credit-deposit) ratio in the state is 123 per cent.

Prasad said that the bank wanted to lay more thrust on areas where it has less or no presence to bring it close to the public and improve business performance in Andhra Pradesh, and towards this was contemplating opening 100 branches in the state, including 10 in Hyderabad and adjoining districts, during the present financial year.

“We already have 10 licences for Hyderabad and 15 for the rest of the state. We are in the process of applying for the remaining locations which we expect to be sanctioned shortly,” he said, adding that the bank would either open or convert at least five of the proposed branches for micro, small and medium enterprises (MSMEs) to extend credit.

Stating that the bank had an overall gold loan portfolio of Rs 6,000 crore last year, Prasad said it had opened five Gold Shoppes in Hyderabad to push gold loans aggressively at more competitive rates with highest amount per gramme quantum.

“The bank has given loans to the tune of Rs 7,000 crore under agricultural advances and has surpassed the target of 40 per cent under priority sector,” he said, adding that the bank had made an application to the Centre to extend Rs 539 crore additional capital this year.