The North Malabar Gramin Bank (NMGB) may be aiming for an aggregate business to the tune of Rs. 5,060 crore in the current fiscal, but the bank—with its operational area in Kannur, Kasaragod, Wayanad, Ernakulam, Kottayam and Alappuzha—wants to present itself as a ‘small man's big bank'.
The NMGB has registered 22.84 per cent growth in its total business, which reached Rs. 4,123.35 crore as against Rs. 3,356.67 crore in the previous fiscal. The bank's goals for the current financial year envisages a total business, including deposits and advances, to the tune of Rs. 2,600 crore and Rs. 2,460 crore respectively.
'Bank for common people'
In a press release regarding the performance of the bank in 2009-10, NMGB chairman V. Sri Rama Prakash said the figures clearly showed that the NMGB is a bank for common people. For example, the average deposit per account in the bank as on March 31 last is Rs. 14,840 and the average amount of loan per account is Rs. 51,790, he said in the release. Per capita housing loan is Rs. 1.80 lakh and the average education loan per account is Rs. 1.10 lakh, he added.
The operating profit for 2009-10 stood at Rs. 28.50 crore, an increase of 163.64 per cent over the Rs. 10.81 crore registered for the previous year, he said. The bank recorded a net profit of Rs. 11.41 crore in 2009-10, registering a growth of 171.67 per cent over the previous year, Mr. Prakash said.
The deposit in 2009-10 increased to Rs. 2078.72 crore from Rs. 1734.95 crore in the previous fiscal, thus registering an annual growth of 19.81 per cent. Low-cost deposit grew by 21.54 per cent and reached Rs.626.69 crore from Rs. 515.63 crore as on March 31, 2009. Advances of the bank grew by 26.08 per cent to Rs.2044.63 crore this fiscal from Rs. 1621.72 crore in the previous fiscal, the release said.
“Keeping in view the government policies and objectives of Regional Rural Banks (RRBs), the bank's thrust on the priority as well as agriculture sectors continued and 85.04 per cent of total outstanding advances are under priority sector, amounting to Rs. 1738.77 crore, out of which Rs. 856.99 crore (41.91% of the total credit) is under agriculture,” Mr. Prakash said in the press release.
Innovative schemes
Innovative schemes such as loans for ornamental fish farming, construction of rural marketing outlets, homestays, house boats for tourism development and venture capital for dairy development are introduced in the bank, he said, adding that it had organised 139 farmers' clubs under NABARD's farmers' club programme.
Total credit disbursement grew by 56.81 per cent to Rs. 2071.81 crore in the last fiscal year compared to Rs. 1321.21 crore in the previous fiscal. Disbursement under the priority sector grew by 52.15 per cent to Rs. 1638.14 crore and under agriculture it grew by 60.31 per cent to Rs. 1,006.01 crore as on March 31 last against Rs. 1076.66 crore for priority sector and Rs. 627.53 crore for agriculture as on 31 March 2009.
The release also said disbursement under housing loan grew by 40.71 per cent to Rs.98.96 crore from Rs. 70.33 crore. Disbursement under education loan grew by 68.54 per cent to Rs. 27.22 crore. Last year it was Rs. 16.15 crore.
The gross NPA (non-performing asset) ratio of the bank as on March 31 last has been brought down to 2.64 per cent from 2.83 per cent in 2008-09, NMGB chairman said.
He added that the net NPA ratio has come down to 1.70 per cent from 1.85 per cent in the last fiscal. The net worth of the bank increased by 7.40 per cent to Rs. 165.55 crore in 2009-10 as against Rs.154.14 crore in 2008-09.
