Andhra Pradesh Grameena Vikas Bank, a regional rural bank sponsored by State Bank of India, is likely to come out with an initial public offering (IPO) soon.
Confirming that it is one of the four regional rural banks identified by the Centre for listing on stock exchanges, APGVB chairman V. Narasi Reddy said the modalities pertaining to the proposed IPO, including the valuation, were being worked out. As on March 31, the net worth of the bank was ₹2,252.82 crore.
On the shareholding pattern in APGVB, he said the Centre holds 50%; SBI 35% and Telangana and Andhra Pradesh governments hold the remaining 15%. The Warangal-headquartered bank has 768 branches – 490 in Telangana and 278 in Andhra Pradesh – and also operates through 1,800 bank correspondents.
Mr. Reddy was responding to queries from the media here on Tuesday after announcing the bank’s performance in 2017-18. The APGVB clocked a net profit of ₹503.01 crore or 42.90% higher than the previous fiscal’s ₹351.99 crore.
The total business increased by 13.75% to ₹28,650.33 crore during the fiscal, he said, adding that the gross NPA declined to 1.36% from 1.69%, while the net NPA was 0.20% (0.72%).
The NIM improved to 4.15% (3.86%). The IPO plans for the regional rural banks come in the backdrop of Finance Minister Arun Jaitley, in his budget speech this year, announcing that it has been proposed to allow strong RRBs to raise capital from the market to enable them increase their credit to rural economy.
