As per directions from Reserve Bank of India, the City Union Bank Ltd has been implementing Financial Inclusion Plan by extending banking services to villages having a population of 2,000 and others, said S. Balasubramanian, Managing Director and Chief Executive of the Bank here on Monday.
He told presspersons that the bank has been allotted 42 villages in Tamil Nadu for implementation of Financial Inclusion Plan (FIP) by State Level Banking Committee (SLBC), Tamil Nadu.
The implementation is under progress. Initially the bank has taken up as pilot projects in two villages namely, Paruthiyur in Kodavasal block in Tiruvarur district and Kattuchery in Porayar block in Nagapattinam district, Mr. Balasubramanian said. The bank has proposed to extend banking services through business correspondent model by providing biometric smart cards.
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In October 2010, the bank has tested online transactions through biometric smart card device at Paruthiyur village. On completion of pilot projects, the bank will implement FIPs in 23 villages by March 2011 in the first phase. Twelve villages will be covered in the first phase in Tiruvarur district, seven in Nagapattinam district, three in Thanjavur district and one in Tiruchi district.
The remaining 19 villages in Tiruvallur, Perambalur, Cuddalore, Karur, Tiruppur, Villupuram and Virudunagar districts will be covered by March 2012.
"We expect to cover 90,000 accounts in villages allotted in a phased manner and will be extending credit to the tune of Rs. 50 to Rs. 70 crore", Mr. Balasubramanian said.
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The bank had shown good results in all the parameters in the first half and second quarter of financial year 2011, the Managing Director said.
The bank has earned a net profit of RS. 100 crore in half year and Rs. 50 crore in a quarter. This is for the first time in the history of the bank.
With respect to Interest Net Income rpt Interest Net Income, it has crossed Rs. 100 crores in six months. This is a milestone in the achievements of a bank.
With respect to deposits the growth was 28.66 per cent and they stood at Rs. 11,494 crores as on September 30, 2010. It has increased from Rs. 8,933 crore as on September 30, 2009.Total advances went up by 38.46 per cent to Rs. 8,039 crore as on September 30, 2010 from Rs. 5,806 crore as on September 30, 2009.
"The bank is moving towards transacting a business to the tune of Rs. 24,000 crore this year", Mr. Balasubramanian said. The bank has introduced mobile banking facility to customers. The bank has entered into insurance business and is doing with LIC, National Insurance and General Insurance companies.