City-based Kanakamahalakshmi Cooperative Bank Limited is targeting to achieve deposits of Rs 100 crore and advances of Rs 70 crore by March 2011, post its merger with the Palakol Cooperative Bank.
Addressing mediapersons here on Tuesday, P Raghunadha Rao, chairman, Kanakamahalakshmi Bank, said, “We have proposed to merge the loss-making Palakol Cooperative Bank and are awaiting Reserve Bank of India’s nod. Post merger, we expect our deposits to be Rs 100 crore by March 2011.”
Kanakamahalakshmi currently has deposits of Rs 48 crore while its advances stood at Rs 37 crore.
Though Palakol has licence to operate six branches, it only has two in West Godavari district. “The bank is in losses due to lack of proper administration,” said Rao. Palakol deposits stand at Rs 7 crore and advances at Rs 3.5 crore.
Rao said Kanakamahalakshmi would infuse about Rs 1.5 crore in Palakol to improve the latter’s financial position. It would also open the remaining four branches for which Palako holds the licence in major towns like Bhimavaram and Tanuku this fiscal itself.
Kanakamahalakshmi Bank currently has only one branch at Visakhapatnam. Last financial year, the bank earned a net profit of Rs 75.32 lakh.