Syndicate Bank eyes Rs 40k cr business from AP in FY13

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 mediapersons here on Monday.

The bank currently has less than five per cent market share in Andhra Pradesh with Anantpur, Kadapa and Kurnool districts being the market leaders. Of its total network of 2,700 branches, Andhra Pradesh stands second with 419 branches, next only to Karnataka, which is 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 the 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 current 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 has an overall gold loan portfolio of Rs 6,000 crore last year, Prasad said it had already opened five Gold Shoppes in Hyderabad to push gold loans aggressively with more competitive rates with highest amount per gram 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.