Guntur coop bank eyes Rs 7.48 crore income

The Guntur Cooperative Urban Bank Limited, with eight branches "� five in city and the remaining at Ponnur, Chilakaluripet and Sattenapalli "� has stepped up efforts to further improve its priority product 'house repair loans' to middle, lower-middle and weaker sections this fiscal.

The bank, which earned a net profit of Rs 62.41 lakh, is targeting an income of Rs 7.48 crore for 2005-06. It plans to bring down its non-performing assets (NPA) from the present 16 per cent to 10 per cent.

T Lakshminarayana, chief executive officer (CEO) of the bank, told Business Standard that 20,000 people of the above mentioned loanee groups had taken house repair loans from the bank, which recently completed 55 years of service.

These loans formed over 50 per cent of the Rs 30.30-crore loans advanced during 2004-05 and the trend had increased this year too. Traders and artisans were given priority next under loans head.

He said the bank earned a net profit of Rs 62.41 lakh during 2004-05. Gross profit was recorded at Rs 8,09,51,536 and loss at Rs 7,47,10,126. Interest received on loans (Rs 6,84,85,159) formed the biggest chunk of profits. Deposits, which totalled Rs 57.66 crore at the end of 2003-04, stood at Rs 45.13 crore. Fixed deposits formed 80 per cent of the amount.

The number of members (14,726) with a share amount of Rs 2.53 crore had come down to 13,843 with a share capital of Rs 2.20 crore. The bank invested Rs 3,600 in GDCCB shares, Rs 7,50,000 in AP Town/Urban Banks Federation shares, Rs 7,75,19,611 in fixed deposits in other banks, and Rs 8,07,96,200 in government securities.

Lakshminarayana said that the bank's head office in Guntur, with deposits at Rs 24.63 crore, and advances at Rs 9.89 crore, stood first among all the branches. The Kothapet branch, which mobilised Rs 8.41 crore deposits and released Rs 11.96 crore loans, came second.

The Pattabhipuram branch was third with deposits totalling Rs 6.39 crore and loans Rs 3.45 crore. The R Agraharam branch achieved deposits worth Rs 2.52 crore and gave loans worth Rs 1.91 crore. The Chandramoulinagar branch deposits stood at Rs 1.41 crore and loans at Rs 5.33 crore.

Among the three outstation branches, he said, the Ponnur branch showed deposits at Rs 80,62,936 and loans at Rs 1,20,86,991. The figures for Chilakaluripet and Sattenapalli branches stood at Rs 75,33,610 and Rs 19,01,911 respectively for deposits and Rs 1,26,20,283 and Rs 30,18,492 respectively for advances.