SBI Vizag to focus on hi-tech agri, biotech sectors

The State Bank of India (SBI) Visakhapatnam Zone, which controls 197 branches in four coastal districts from Srikakulam to East Godavari, is focussing more on lending to hi-tech agricultural and biotech industries this fiscal.

"Biofertiliser, biopesticides, tissue culture, vermiculture, micronutrients and hi-tech agricultural activities such as construction of green houses and rural godowns are our new thrust areas. This year, we are concentrating more on lending to these sectors," Supriyo Kumar Chaudhuri, deputy general manager, SBI Vizag Zone, told Business Standard.

The bank has already advanced Rs 2.5 crore to a biofertiliser manufacturing unit in Vizianagaram district.

During the current year, the zone has targeted to give Rs 150-160 crore advances to agricultural sector, including hi-tech agricultural.

"We are appointing fresh agricultural graduates to market and recover agricultural loans. So far, we have set up nine MRT (market recovery teams). By the end of this fiscal, four or five new teams will be set up. Our target is to sanction about Rs 2 crore a month by each team. With the setting up of MRTs, our agricultural loan recoveries have improved significantly," he said.

The bank is also initiating steps to lend more than Rs 50 crore as gold loans this year as against Rs 25 crore during the last fiscal. It has been conducting mega loan melas every year to promote personal and educational loans.

"During the current loan mela time, the bank can sanction loans up to Rs 250 crore," he said. During 2004-05, SBI Vizag zone sanctioned loans worth Rs 610 crore as against Rs 480 crore during last fiscal.

Besides, the bank is aiming for a 48 per cent growth in deposits collection during the current year as compared to last fiscal. In 2004-05, it collected Rs 471 crore new deposits and in the current year, it has set a target of Rs 700 crore new deposits.

"Last fiscal, we added about 1.7 lakh new accounts. This year, we are targeting to bring 2 lakh new customers into our fold. Hence, our low cost deposits will be raised to about 48 per cent from the existing 42 per cent," he said.

The bank is also taking steps to reduce non-performing assets (NPAs) by the end of March 2005. The zone's gross NPA was 6.63 per cent and by the end of this fiscal, it plans to bring it below 6 per cent. "Of our total NPA, 50 per cent belongs to BHPV account, which is a loss-making public sector undertaking," Chaudhuri added.

Apart from this, SBI Vizag is setting up 40 more ATMs during this fiscal across the four coastal districts.

"As on March 2005, we have 64 ATMs in our jurisdiction. By the end of this fiscal, this number would be increased to 104. Of our total ATMs, more than 45 per cent were set up in rural and semi-urban areas only," he said.

Currently, only 25 branches in this zone are covered under the core banking network. By the end of this fiscal, the bank is planning to bring all the 197 branches under core banking network.

"We have introduced special services to high-value customers and are gradually increasing the number of 8 am to 8 pm branches. We have also commenced the 7-day bank system in some branches and will extend this facility to other branches in a phased manner," he said.