BoI Vizag to mobilise Rs 177cr new deposits

Bank of India (BoI) Visakhapatnam Zone registered mobilised Rs 177 crore new deposits in the financial year 2006-07 as against Rs 58 crores in the previous year, posting a growth of about 205 per cent.

The zone comprises 49 branches covering 7 coastal districts from Srikakulam to Guntur.

Of the new deposits more than 35 per cent was low-cost and no-cost deposits, DVSK Murthy, deputy general manger, BOI, Visakhapatnam Zone, told Business Standard. Due to increase in low-cost deposits and a reduction in NPA, the bank's margins also increased significantly, he added.

During 2006-07, the zone achieved 84 per cent growth in net profit compared with the last fiscal. "In 2005-06 our net profit was Rs 38 crore, which rose to Rs 70 crore in 2006-07. We are aiming for Rs 100 crore net profit in the current fiscal," he said. During the last fiscal, the bank's could reduce the NPA to 3.9 per cent from 7.7 per cent and expects a further reduction to 2.3 by March 2008.

The bank was also giving more advances in the area, he said. "According to the Reserve Bank of India norms CDR (cash deposit ratio) should not be less than 60 per cent, but we have crossed the limit and touched 180 cent," he added.

As of March 2007, the zone's total deposits stood at Rs 676 crore and advances Rs 1,173 crore. It released Rs 22 crore as advance to 4,000 self-help groups.

During the current fiscal, the bank has set a target of Rs 2,200 crore (Rs 800 deposits and Rs 1,400 advances) for the zone.

"To achieve this goals, we plans to open five new branches at Visakhapatnam, Vijayawada, Guntur, Kakinada and Yanam during this fiscal," he said.