It has opened 13 branches to date under the guidance of Manam Anjaneyulu
The co-operative bank now enjoys a share capital of Rs. 23.79 crores
It plans to open 20 branches by 2010
VISAKHAPATNAM: The no nonsense approach of Manam Anjaneyulu, a seasoned politician, in managing the affairs of Visakhapatnam Co-operative Bank Ltd. (VCB) has put it on a sound footing.
From a share capital of Rs. 8 lakhs with a membership of 2,873 in 1983 to Rs.23.79 crores and 34,462, it’s a long journey for Mr. Anjaneyulu. Being at the helm as its Chairman for 25 years, he steered it from single branch to the one with 13 branches an extension counter. VCB acquired Bobbili Cooperative Bank, which was in the red, in November 2007. With this, it has branches at Bobbili, Parvathipuram in Vizianagaram and Rajam in Srikakulam district.
The extension counter at Latchayyapeta in Vizianagaram will become a regular branch. RBI central office consent is awaited for acquisition of Ramachandrapuram Urban Co-operative Bank in East Godavari.
Mr. Anjaneyulu told THE HINDU that they could grow from strength to strength due to excellent support from the staff and shareholders. “Though people from Congress and other parties are also shareholders, we made it a point to keep off from politics in managing its affairs with a professional touch,” he said when asked about his secret of success. The share capital has not eroded at any point of time.
On the turbulence the bank witnessed in 2003 following panic withdrawals to the tune of Rs.60 crores, he said reports by some vested interests led to panic reaction. There was nothing wrong at that point of time in depositing surplus amount in Vasavi and Prudential banks. “Keeping money idle is considered bad fiscal management,” he averred.
Mr. Anjaneyulu said after certain bank scams, RBI issued a circular in 2001 prohibiting investments in cooperative banks by other banks. The bank could regain the confidence of its investors due to principled stand adopted by the management, he pointed out.
VCB will have 20 branches by 2010. By March 2009, the bank is expecting to reach deposits to the tune of Rs.500 croes and a lending amounting to Rs.370 crores to Rs.375 crores. The business amount will cross Rs.1,000 crores by March 2009.
During past 25 years, the deposits and loans have gone from Rs.69 lakhs and Rs.60 lakhs respectively to Rs. 385 crores and Rs. 279 crores (as on March, 2008). Mr. Anjaneyulu ruled out seeking scheduled bank status, saying instead of achieving status symbol, they were more interested to reach out to the poorer sections.