Andhra Bank to open office in Dubai

Andhra Bank is planning to start its operations in Dubai soon. The bank recently received approval from the Reserve Bank of India to set up a representative office there.

Addressing media here on Wednesday, K Ramakrishnan, chairman and managing director, Andhra Bank, said, "We have got approval from the Reserve Bank of India to set up a representative office at Dubai and very soon we are going to start our operations there."

The bank also plans to open a few branches in the US and other countries and is, therefore, looking for consortiums or joint ventures with other public sector banks in this regard. "Opening a branch overseas needs huge investment. That's why, we plan to form consortiums or joint ventures with public sector banks," he said.

During last fiscal, the bank opened 40 new branches across the country and in the current year, it may add 20 to 25 new branches, he said.

This year, the bank is aiming for more low-cost and no-cost deposits. Last fiscal, new deposits were around Rs 4,600 crore and of it low cost deposits were only 16 per cent, Ramakrishnan said, adding, that in the current year, the bank is targeting to acquire new deposits to the tune of about Rs 7,000 crore, of which low cost deposits will be around Rs 3,300 crore, which is about 47 per cent.

The bank is also laying more emphasis on agricultural and farming loans in the current year. It has set a target to sanction Rs 4,200 crore advances to agriculture sector and Rs 1,000 crore as educational loans, he said.

"Apart from retail lending, in the current year, we want to finance mega projects and if necessary, we will form consortiums with other banks in this regard," he said.

During the year 2004-05, the bank reduced its gross non performing assets (NPA) to 2.46 per cent from 4.60 per cent. At present, the bank's NPA involves about Rs 430 crore. "By the end of this fiscal, we are targeting to collect at least Rs 200 crore," he said.