South Malabar Gramin Bank to open 15 new branches

With a view to extending its operations to Thiruvathapuram and Idukki districts, the South Malabar Gramin Bank (SMGB) is planning to open 15 new branches in the two districts this fiscal.

The bank would also set up 25 ATMs in rural areas, SMGB chairman Thomas Mathew told reporters after a board meeting here.

Of the proposed 15 branches, nine, including an area branch, would be set up in Thiruvanathapuram while six would come up in Idukki, said Thomas Mathew.

The bank would also connect all the branches to the head office by undertake total computerisation this year.

Malappuram-headquartered SMGB has achieved a total business of Rs 2,613 crore during 2005-06, registering a growth of 20 percent and retained the premier position among the regional rural banks (RRBs) in the country. The bank also achieved a credit deposit ratio of 112 percent, the highest among any banks in the state.

Elaborating on the banks performance in the last fiscal, the SMGB chairman said that deposits increased by Rs 191crore to Rs 1,236 crore while advances stood at Rs 1,377 crore, registering an increase of Rs 237 crore.

About 90 percent of the loans went to the priority sector and weaker sections as against the RBI stipulation of 60 percent. The bank disbursed Rs 960 crore to the agriculture sector, he said.

The bank achieved 91 percent recoveries and the gross NPA was brought down to 3.7 percent from the previous years' 3.9 percent. The profit, however, fell to Rs 17.40 crore, about Rs 2 crore less than that of 2004-05.

"Various factors contributed to the drop. Interest rates were reduced on two occasions and the salary of the employees had to be revised," Thomas Mathew said.