Andhra Bank with an aim to expand its network to provide better services to its customers has decided to open 100 new branches every year.
Recollecting the initiatives taken up this year to set the bank on the ‘transformation path’, the Chairman and Managing Director R.S. Reddy informed that 121 branches will be opened by August 15 and about 100 by March 2010, besides setting up 50 ATMs.
He said, “Also, we will open 100 branches every year to ensure equitable distribution of branches across the country”.
Along with this the bank has a target of doing a business mix of Rs.1,30,000 crore by March 2010, at a growth rate of 30 per cent and Rs.1,50,000 crore by September subsequently. The bank with a view to upgrade its brand image, ‘Dolle - The Dolphin’ has been recently introduced as its mascot, to spread the clear message that the bank is friendly intelligent and responsive.
Mentioning about the impressive results attained for the first quarter, Mr.Reddy notified that the net profit witnessed an extraordinary growth from Rs.77 crore to Rs.256 crore redeploying a growth rate of 230 per cent.
“The total income grew by 38 per cent while the total expenditure was contained at 31 per cent. The Capital Reserve Adequacy Ratio (CRAR) improved to 14.75 p.c., while the Non-Performing Assets (NPA) were pegged at just 0.22 per cent of the net advances, putting the bank among the best in the country”.
While the Tirupati zone is on the edge of attaining a business level of Rs.3690 crore by the end of the current fiscal.
As for overseas business bank has signed a MoU with Bank of Baroda and Indian Overseas Bank for launching a banking subsidiary in Malaysia, having a growing economy with large Indian population.
Mr Reddy said the booming India-centric trade and the high margins are the two factors which secured the deal in their favor. The plan to make presence in Malaysia was to ensure that the capital of Rs.400 crore required to open the subsidiary will be met by the three banks.