Andhra Bank to focus on non-banking products

Andhra Bank will focus on non-banking products and fee-based income, besides increasing low-cost deposits and reducing its NPA to augment growth.

Addressing the inaugural session of the 8th conference of the All India Andhra Bank Officers' Federation here on Sunday, Andhra Bank's chairman and managing director K Ramakrishnan said, "The Indian banking system has been undergoing a tremendous change. The interest rates are narrowing by the day while the operational costs are going up. In the days to come, the post-Basel II environment would pose several challenges to the effective governance of banks. To survive and to stay in competition, banks have to come out with more facilities and services for their customers."

The bank has already introduced products like 'AB Treasure', a fixed deposit scheme, and 'AB Tax Saver', a term deposit scheme.

Ramakrishnan said the bank had set a target of Rs 1 lakh crore business by 2009, against Rs 54,000 crore achieved in June 2006.

"We plan to garner a total business of around Rs 67,000 crore this financial year," he said.