SBI arm expands in Punjab, Haryana

Under a major expansion drive, the State Bank of Bikaner and Jaipur will open six new branches in Punjab and Haryana by the end of this year. The Rajasthan-based bank now has a network of 9 branches in Punjab and 11 in Haryana.

The managing director of the bank, K R Srikantan, who was in town to inaugurate 825th branch of the bank in Mohali told Business Standard that the bank was getting about 12% of the business from Haryana and Punjab.

Besides these six new branches ,the bank would open 25 new branches in the various locations across India by the year end. The bank is also contemplating of setting its foot in Baddi and Parwanoo, the industrial nerve centers of Himachal Perdesh.

According to Srikantan, with a total turnover of Rs 31,600 crore bank acquired a market share of 1.16 per cent last year. The bank clocked in a 36 per cent growth in advances and 82 per cent in advances in the last financial year.

Against the stipulated requirement of 9%, the bank has a capital adequacy ratio of 12.6%. He told that the growth rate of 54.5% in retail portfolio was recorded last year. He apprised that the gross NPAs of the bank dwindled from 5.37% in March 2004 to 3.26% in March 2005.

He told Business Standard that the bank was open to entre into arrangements for contract farming in Punjab for the viable projects.

"The major hiccup is the marketability of the produce grown under contract. But we always welcom the proposals those need funds for the diversification of agriculture", he added. The bank now has 103 branches under CBS(core banking solutions).

Srikantan pointed out that the bank has invested Rs 100 crore in the technology upgrade and by the year-end all branches would be under CBS. The bank has recently received license from the reserve Bank of India for internet banking, said Srikantan.