Tungabhadra Grameena Bank nets Rs. 20.05 crore profit

BELLARY, APRIL 24. The Tungabhadra Grameena Bank has recorded a net profit of Rs. 20.05 crore, which is the highest compared to that of any previous years, P.N. Murthy, chairman of the bank, has said.

Releasing a report on the performance of the bank in 2003-04, here on Friday, Mr. Murthy told presspersons that the bank's total business had gone up from Rs. 1,113.68 crore to Rs. 1,201.25 crore, recording a growth of eight percentage points.

While the deposits stood at Rs. 618.17 crore, the advances totalled Rs. 583.08 crore, and the gross income of the bank had touched Rs. 93.37 crore, which was an increase by Rs. 1.76 crore over that of the previous year, he said.

Mr. Murthy said the bank, sponsored by Canara Bank, was one of the eight regional rural banks (RRBs) in the country to record business exceeding Rs. 1,000 crore and one among the six RRBs with statutory reserves exceeding Rs. 100 crore as on March 2003. The bank had drawn up a strategic plan to reach a business turnover of Rs. 1,375 crore during 2004-05, he said.

He noted that the credit deposit ratio of the bank stood at 94 per cent as against the national average of 42 per cent for RRBs.

Of the total outlay of Rs. 583 crore, 83 per cent (Rs. 484 crore) had been earmarked for the priority sector, he said and added that encouraging micro credit by forming self-help groups (SHGs) and providing credit linkage was high on the bank's priority.

Mr. Murthy said Rs. 1.98 crore had been advanced to Dalits and the poor under various government schemes. In order to give a fillip to farm mechanisation, the bank had entered into a memorandum of understanding with HMT Tractors Ltd. following which the latter had announced a discount of Rs. 5,000 on its invoice price to farmers who availed themselves of loans from the bank, he said. The bank had also entered into a MoU with Tafe Ltd. and Bajaj Tempo Ltd. to provide tractors, farm machinery, and equipment to farmers under attractive schemes.

In accordance with the guidelines issued by the National Bank for Agriculture and Rural Development, the bank had introduced the Swarojgar credit card Scheme to help rural artisans and small entrepreneurs.

Mr. Murthy said strengthening the infrastructure, giving a thrust to economic activities, improving the irrigation potential, and encouraging farm mechanisation, dry land development, milk production and processing, poultry, inland fisheries, housing, transport, and service activities were among the core areas identified by the bank for advancing loans.

The bank, with its head office in Bellary, catered to people in the rural areas of Bellary, Raichur, and Koppal districts and those living in Harpanahalli of Davanagere district.

It had planned to computerise its branches and administrative offices in about two years, besides planning to open four branches, he said.

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