Bor Eyes Rs 80 Crore Net Profit

Bank of Rajasthan (BoR), one of the oldest private sector banks in the country, is likely to earn a profit of Rs 80 crore in 2002-03.

"We hope to close the current financial year with a profit of Rs 80 crore and hope to declare a dividend this year," P K Tayal, chairman of the bank, said.

Tayal who was addressing a press conference here on Sunday said in the first six months of 2002-03, the bank is optimistic of earning a record profit of Rs 40 crore.

Tayal said the bank has initiated steps to recover dues from the Bangurs. He said a sum of Rs 200 crore is yet to be recovered from them and added that he is optimistic of recovering the amount.

 

He said the bank, which was passing through a difficult phase with accumulated losses of Rs 157 crore and a capital adequacy ratio below one per cent during 1995-99, has shown a complete turnaround in the last three years.

BoR posted a rise in profit from Rs 12.07 crore in 1999-2000 to Rs 40.31 crore in 2001-02. The capital adequacy ratio of the bank improved from 0.83 per cent as on March 31, 1999 to 12.07 per cent as on March 31, 2002.

The capital adequacy ratio in the first five months of the current year has improved to around 14 per cent. The bank has since wiped off its entire accumulated loses. Its net worth stood at Rs 233 crore and total business at Rs 7,000 crore.

Tayal said the bank has ambitious branch expansion plans and aims to raise its network of 365 branches and extension counters to 500 offices in the next three years.

The bank is in the process of implementing anywhere banking in 41 more centres during the current year. At present, it offers the facility at 59 branches in 33 cities.

It also plans to provide on line ATM facility at all important centres and a "one-stop shop" service, where all products of the bank will be available under one roof.