Andhra Bank to open 150 bio-metric ATMs

In an effort to reach out to a large section of illiterate customers, the public sector Andhra Bank proposes to install over 150 new bio-metric ATMs in the country during fiscal 2007-08.

They will be located in the rural and semi-urban areas, and the urban centres will continue to have regular ATMs.

The bank recently opened two biometric ATMs in Andhra Pradesh which are becoming very popular, K Ramakrishnan, chairman and managing director, Andhra Bank said.

Speaking to reporters here after opening the bank's 25th branch in Bangalore today, he said the bank also intends to extend the network of mobile ATMs in the country in the next fiscal after the recent success of mobile ATM at Sabarimala.

These mobile ATMs will target the rural and semi-urban areas and provide basic banking facilities like withdrawal and deposit of cash. Bio-metric ATMs are safer than PIN-based ATMs and will help dissuade people from misusing their accounts, he said.

Ramakrishnan said that the bank has received a special approval from the Reserve Bank of India to expand its bio-metric ATM network in the country.

These ATMs will cater to the customers in their local languages. Presently, two ATMs serve customers in Telugu in Hyderabad, he said adding that very soon one such ATMs will be installed in Bangalore with Kannada interface. Of the 150 new bio-metric ATMs planned to be installed next fiscal, 60 per cent will be in Andhra Pradesh and the rest in other states, he added.

The investment per ATM will be in the order of Rs 4.5 lakh and the bank is not constrained by funds to expand its network, Ramakrishnan said adding that the bank was also planning to launch smart card pilot project in Warangal district of Andhra Pradesh to pay wages and pensions.

The bank is implementing this project in association with four other banks "" Canara Bank, Syndicate Bank, Union Bank of India and State Bank of Hyderabad.

For the third quarter-ending December 31, 2006, Andhra Bank reported a net profit of Rs 399.12 crore, a growth of 15.05 per cent over the same period last year. Its total business during the period stood at Rs 61,689 crore for the quarter, a growth of 18.53 per cent over the corresponding period last year. For the year-ending March 31, the bank is targeting a business of Rs 71,000 crore.