Vizag coop bank to introduce online banking

The Visakhapatnam Cooperative Bank (VCB) is planning to introduce online banking facility. The bank, which has 10 branches in the district (eight in Vizag and two in rural areas), has completed the computerisation of six branches, while the process is underway in the others.

As part of its expansion plans, the bank would open three to four new branches once the Reserve Bank of India gives its green signal to the move.

"Initially, we want to link one or two city branches to our head office, located in the old town area, by the end of March 2006. Once the first phase proves successful, we will take up linking of the remaining branches in a phased manner," Manam Anjaneyulu, chairman, VCB, told Business Standard.

The bank had already appointed professionals to initiate the computerisation process, which would give its one lakh customers anywhere banking facility, he added.

VCB, which is the second largest cooperative urban bank in the state, is targeting a turnover Rs 500 crore by March 2007. "By March 2006, our turnover is likely to grow to Rs 425 crore. The bank is aiming to touch the Rs 500-crore mark by March 2007," he said.

"By March 2007, we expect our deposits to touch Rs 310 crore from the existing Rs 220 crore as the bank is offering higher interest rates on deposits," he said.

"The bank has a share capital of about Rs 14 crore, which is the highest among all the urban co-operative banks in the state. We are providing insurance cover up to Rs 50,000 to each of our 25,000 shareholders besides mediclaim cover worth Rs 8,000," he added.