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Bank of Maharashtra banks on retail credit growth in UP

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BS Reporter New Delhi/ Lucknow
Last Updated : Jan 20 2013 | 7:32 PM IST

Public sector Bank of Maharashtra (BoM) is banking on retail credit for growth in Uttar Pradesh and Uttarakhand.

“We are targeting the retail credit segment, including home, education and vehicle loans, to increase our business portfolio in the region,” bank’s assistant general manager (Lucknow region) P K Alavadi told Business Standard.

Besides, the Bank has firm plans to expand its footprint in the two states.

Apart from retail credit, BoM is looking at the Micro, Small and Medium Enterprises (MSME) sector for lending opportunities. Its MSME credit stands at about Rs 45 crore in the region.

The Bank has a small network of about 45 branches in the state, including National Capital Region (NCR) areas, and Uttarakhand spanning about 24 districts.

“We have Reserve Bank of India’s (RBI) licenses to open about a dozen more branches in the state,” he informed.

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BoM is eyeing a business of around Rs 1,400 crore in Lucknow during the current financial year. The Bank has reported good deposit growth in semi-urban areas of the state.

“We have achieved a business of about Rs 1,100 crore till December,” Alavadi said adding the Bank’s credit-deposit ratio stood at about 55 per cent in Uttar Pradesh, which was better than the industry average in the state.

Meanwhile, the Bank has increased interest rates on domestic term deposit ranging between 25 and 70 basis points on varying maturity bands. Now, the deposit of Rs 1 crore will earn 9 per cent interest (increase of 70 basis points) for a year.

Pan-India, BoM has about 1,512 branches spread across 22 states and two union territories. All the branches had been brought on the Core Banking Solution (CBS) platform.

The total business had touched Rs 1,00,000 crore, including roughly Rs 60,000 crore and Rs 40,000 crore of deposits and advances respectively.

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First Published: Jan 12 2011 | 12:16 AM IST

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