Indian Bank Vizag deposits grow 230%

Indian Bank Visakhapatnam circle, which covers five coastal districts from Srikakulam to West Godavari, registered a 230 per cent growth in deposits during the fiscal ended March 31, 2005 as compared to 2003-04.

"This was possible mainly due to Visakhapatnam Steel Plant's deposits and the increase in current accounts," Mohammed Najumuddin, deputy general manager, Indian Bank, told Business Standard.

Indian Bank Vizag circle mobilised Rs 152 crore new deposits in 2004-05 as compared to Rs 46 crore in the previous year, reflecting a growth of about 230 per cent. The total business too crossed the Rs 1,000-crore mark during this fiscal.

"By end of March 31, 2004, the total business was Rs 745 crore, which increased to Rs 1,013 crore by the end of March 31, 2005. The cumulative deposits stood at Rs 626 crore and the total advances at Rs 387 crore. Of the total deposits of Rs 626 crore, no-cost and low-cost deposits were about Rs 173 crore. This year, the bank is aiming at more low-cost and no-cost deposits by opening more current and savings accounts," Najumuddin said.

Due to the increase in low-cost and no-cost deposits, the bank's net profits also increased.

During the just ended fiscal, the net profits climbed to Rs 15 crore as compared to Rs 11 crore in the previous year, thus recording a growth of 36 per cent, he said.

The net non performing assets (NPAs) reduced from 3.43 per cent by March 2004 to 1.55 per cent by March 2005.

"During the last fiscal, we issued 44 notices under the Securitisation Act, and were able to collect dues to the tune of Rs 74 lakh," he said.

Indian Bank Vizag circle has 44 branches and two extension counters. This year, the bank is planning to open a couple of branches more in this area.

"For the first time in this circle, we have got permission from the central office to create core banking facility. By the end of June, we will cover 15 branches under core banking. The remaining branches too will be covered soon," Najumuddin said.