Special Correspondent

`Suvidha Vikas' big hit in Srikakulam district

  • Every branch asked to open 1,000 new, no-frill low-cost accounts
  • Gramina Bank posts net profit of Rs. 15.49 crore

    HYDERABAD: The Andhra Pradesh Grameena Vikas Bank (APGVB) will expand its network by opening 52 new branches this year.

    The State Bank of India-sponsored bank, which was formed by amalgamating five regional rural banks operating in eight districts on April 1, 2006, already has 483 branches. While the Government of India has 50 per cent share, SBI holds 35 per cent and the State Government controls 15 per cent of the stake in the bank.

    Addressing a press conference here on Saturday, chairman of the bank A. Anantha Krishna said that `Suvidha Vikas' scheme, under which debt swapping was allowed for easing the pressure on customers, especially farmers, was big a hit in Srikakulam district. The bank will implement the scheme enabling farmers to repay their high-interest loans with low-cost borrowings, as part of its financial inclusion plans, in the remaining seven districts too.

    Every branch was asked to open 1,000 new, no-frill low-cost accounts with a view to introducing people without a bank account to banking experience. As regional rural banks had been brought under the purview of income tax (IT) since 2006-07, the APGVB posted a net profit of Rs. 15.49 crores. Of the bank's total business of Rs. 4,813 crores, the chairman said Rs. 2,718 crores accounted for deposits (24.16 per cent of growth) and Rs. 2,095 crores was advances (a rise of 16 per cent).