Kolkata-based Allahabad Bank is all set to reduce its non-performing assets (NPAs) to eight per cent within March 2002. The bank hopes to achieve a turnover of Rs 35,000 crore in the fiscal.
According to chairman and managing director B Samal, the priority of the bank was to curtail NPAs to 8 per cent within March 2002. The bank has set a deposit target of Rs 3,000 crore and aims at advances of Rs 2,000 crore for 2001-02.
Speaking at a function marking the introduction of Internet banking services in the eastern region at Allahabad Bank's industrial finance branch in Kolkata, Samal said the bank expects to save Rs 28 crore on establishment costs, including savings of Rs 20 crore from seven per cent reduction through VRS in staff and the rest through dismantling of zonal offices.
Samal said, for 2000-01, the bank recorded a total business of around Rs 30,000 crore, with NPA level in the year around 10 per cent. Though NPA had been reduced by Rs 280 crore this year, the net effect not be much due to addition of fresh NPAs during the year.
Samal said that in 2001-02, more retail boutiques would be added to the existing chain, in view of the success of 12 retail boutiques which accounted for around Rs 1.47 crore of the bank's profit this year. With the additions, retail boutiques are expected to churn out a profit of Rs 90 crore, almost double the current figure of Rs 49 crore.
Allahabad Bank has established connectivity with 19 major centres making use of the Vsat network under RBI's Infinet system. However, it has failed to meet its target of linking 728 branches before March 31, 2001. So far, 560 branches have been connected, and 68 per cent of the total business was being done through the network.
The bank plans to achieve 70 per cent computerisation by investing a sum of Rs 15 crore this year, apart from the Rs 150 crore already spent on this. The bank expects to add another 20 ATMs within June 2001, to the existing 27.
