Special Correspondent

Total business touches Rs.3,357 crore

Bank has a client base of 16.5 lakh

Gross non-performing assets put at 45.91 crore

KANNUR: The North Malabar Gramin Bank (NMGB) has posted a growth of 20.28 per cent in 2008-09, with its total business touching Rs.3,357 crore as against the Rs.2,791 crore registered in the previous financial year.

The NMGB is a scheduled bank owned by the government and operates in Kannur, Kasaragod, Wayanad, Ernakulam, Kottayam, Alappuzha and Kollam districts.

It registered growth in almost all parameters during 2008-09, bank chairman Sri Rama Prakash said in a press release here on Sunday. Deposits of the bank grew by 25.22 per cent, from Rs.1,386 crore to Rs.1,735 crore, he said adding that core deposits of the bank registered a growth of 36 per cent, from Rs.1,115 crore to Rs.1,514 crore.

NRE deposits

The bank’s NRE deposits showed a growth of 18.42 per cent, from Rs.90 crore to Rs.107 crore.

The bank’s advances recorded a 14.33 per cent growth, from Rs.1,419 crore to Rs.1,622 crore, despite the writing off of Rs.203 crore under the Agricultural Debt Waiver and Debt Relief Scheme of the Centre, he said.

Mr. Prakash said the bank’s loan disbursement exceeded the target of Rs.1,300 crore and achieved Rs.1,321 crore during the year. Out of this, Rs.628 crore was given to the agriculture sector.

The bank’s outstanding advances under the priority sector showed an 85 per cent growth with Rs.1,379 crore while the loans to weaker sections was Rs.715 crore (44 per cent).

Outstanding advances under the housing loan segment was Rs.252 crore under 15,342 accounts. The bank disbursed educational loans to the tune of Rs.45 crore under 4,735 accounts and Rs.20.57 crore to self-help groups.

The bank chairman said the operating profit of the bank had shown a decline from Rs.15 crore to Rs.10.80 crore and net profit for the year was Rs.4.20 crore. The decline in profit was attributed to potential income due to the writing off of Rs.203 crore, among other factors.

Non-performing assets

The gross non-performing assets (NPAs) of the bank was 45.91 crore (2.81 per cent of gross advances) and net NPA was only 1.85 per cent (Rs.29.79 crore), the chairman’s press note said.

The instruction for restructuring eligible advances were received late during last week of March so that the bank could not undertake the exercise of restructuring. NPAs could be reduced with restructuring, he said.