Swasakthi Coop Urban Bank eyes Grade I status

Swasakthi Mercantile Cooperative Urban Bank is eying the RBI recognition as a Grade 1 bank this financial year.

The bank recorded a net profit of Rs 36.78 lakh for the year 2004-05 as compared to Rs 31.50 lakh in the fiscal 2003-04. With net non-performing assets (NPA) standing at zero, it has emerged a leader among the new generation of private urban banks in Vijayawada.

Y Chandrasekhara Rao, chief executive of the bank, told Business Standard that "the bank has 7,000 savings bank accounts in its ledgers. Our aim this financial year is to get the RBI recognition as a Grade 1 bank. The bank's assets have gone up to Rs 5.42 crore from Rs 4.53 crore in 2003."

He said, "The bank has mobilised deposits worth Rs 3.78 crore till July as against Rs 2.27 crore in the 2003-04 and advanced Rs 3.86 crore loans under various heads. The bulk of business up to Rs 1 crore comes from the Road Transport Office. Railway employees come first among our loanees."

He said the bank's share capital rose to Rs 31.29 lakh (1966 members) from Rs 30.30 lakh (2025 members) in 2002-03.

The bank has invested Rs 88.34 lakh in other banks, government securities and other instruments. He said the deposits included short-term (Rs 14.39 lakh), fixed deposits (Rs 77.51 lakh), Swasakthi deposits (Rs 1.27 crore), savings deposits (Rs 1.28 crore), recurring deposits (Rs 12.92 lakh) and current deposits (Rs 9.89 lakh).

According to him, advances included gold loans (Rs 20.03 lakh), loans against fixed deposits (Rs 6.56 lakh), demand loans (Rs 99.89 lakh), ODs (Rs 1.53 crore) and other secured loans (Rs 1.02 crore).