Allahabad Bank to open more branches, ATMs in Gujarat

Allahabad Bank plans major expansion in the state in the current fiscal year.

Ahmedabad will be connected to nine other major cities of the country under the bank's core banking solutions platform by the year-end.

Allahabad Bank has also introduced a whole range of new schemes for the customers to mark the 140th Foundation Day of the bank, which was celebrated on Saturday.

The bank has a network of 24 branches in 11 districts of Gujarat.

Allahabad Bank officials on Saturday said plans have been chalked out to open eight more branches and ten more ATMs in Gujarat. "We have submitted papers to the Reserve bank of India for approval for a couple of branches," said A L Daultani, assistant general manager, Ahmedabad region.

Daultani said the bank transacted business worth Rs 1,082 crore in Gujarat, with both deposits and advances showing a huge spurt in the fiscal year ended March 31, 2004.

"The non-performing assets level in the Ahmedabad region is below ten per cent and we have now decided to enter more districts to increase our presence in the state," Daultani said.

The official said deposits of the bank grew by 114 per cent in the state from Rs 302 crore as on March 31, 2003, to Rs 640 crore on March 31, 2004.

Similarly, advances, which stood at Rs 248 crore as on March 31, 2003, grew to Rs 436 crore as on March 31, 2004, a rise of 75 per cent.

"We will open a branch at Bhuj in Saurashtra this fiscal year. We will gradually move into semi-urban areas of the state as well," said Daultani. A total of eight branches will be opened in the year in Gujarat. He said with a growing trend of NRIs investing in Kutch, the bank will do good business in Bhuj.

Daultani said most of the ATM expansion will take place in the four major cities of Ahmedabad, Vadodara, Surat and Rajkot.

"But the bank is also considering to sign memorandums of understanding with other banks so that their ATM network can be used by our customers," the official said.

Daultani said Ahmedabad will be connected to nine other major cities of the country under the core banking solutions platform in the current fiscal year itself. Subsequently, other major cities of Gujarat too will be brought under the CBS platform, Daultani said.

Some of the schemes that were launched to mark the 140th Foundation Day of the bank are a free personal accident insurance cover of Rs one lakh for customers who maintain an average monthly balance of Rs 5,000, a scheme where the most valued customers will be given loans of up to Rs three crore at an interest rate of two percentage points below the PLR and launching of Kisan Shakti Yojana for farmers where Kisan Credit Card holders for three years will be given loans of up to Rs five lakh at interest rates starting from 8.5 per cent.

The bank also plans to open rural boutiques, which will provide loans for people from rural areas.

The rural boutiques will be like the retail banking boutiques of the bank in urban areas, which are specialised sections in branches dealing exclusively with loans.