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APGVB outdoes big banks in FY16
While many of big banks including Punjab National Bank (PNB) reeled under mounting non-performing assets (NPAs) and posted big losses last financial year, Andhra Pradesh Grameena Vikas Bank (APGVB), a regional rural bank, outdid them and churned out decent financial numbers, including a big drop in bad loans, an unheard-of feat in the banking industry these days.
Rural bank’s net NPAs drop to 1.4% from 2.32%; Net profit up 11% to `223 cr
Hyderabad: While many of big banks including Punjab National Bank (PNB) reeled under mounting non-performing assets (NPAs) and posted big losses last financial year, Andhra Pradesh Grameena Vikas Bank (APGVB), a regional rural bank, outdid them and churned out decent financial numbers, including a big drop in bad loans, an unheard-of feat in the banking industry these days.
The Warangal-based rural bank saw its net profit jump up by 10.84 per cent to Rs 223.47 crore in 2015-16 from Rs 201.61 crore a year ago. The net NPAs were down to 1.40 per cent, or Rs 147.89 crore, from 2.32 per cent, or Rs 222.43 crore, a year ago. The gross NPAs fell to 2.38 per cent, or Rs 251.99 crore, from fiscal’s 3.30 per cent, or 299.03 crore, in 2014-15.
“We know many banks are hit by increasing NPAs last financial year. But we have adopted innovative approaches like grama sabhas or lok adalats, mutual agreements to reduce our NPAs. We have also made effective use of Sarfaeshi Act and that helped us in bringing NPAs down significantly,” V Narasi Reddy, Chairman, APGVB, told media here on Monday.
A collaborative venture of State Bank of India (SBI), the central government and erstwhile united Andhra Pradesh government, APGVB operates across five districts of Warangal, Khammam, Nalgonda, Medak and Mahabubnagar in Telangana and three districts of Srikakulam, Vizianagaram and Visakhapatnam in Andhra Pradesh.
In 2015-16, the bank did a total business of Rs 20,803.89 crore, a growth of Rs 19.94 per cent from Rs 17,345.62 crore a year ago. Deposits went up by 23.21 per cent to Rs 10,102.12 crore from Rs 8,280.01 crore a year ago. The advances reached Rs 10,601.77 crore, up 16.94 per cent from Rs 9,065.61 crore in the preceding financial year.
“In the current financial year, we are targeting 25 per cent growth in deposits and 21 per cent upswing in advances. Besides, we are also looking to enhance contribution from the MSME sector from the present 4.5 per cent of the total advances to 7.5 per cent,” APGVB chief maintained.
He further said that efforts were underway to open 50 new branches in the current fiscal. At present, it operates 752 branches with Telangana accounting for 490 branches. Nearly 71 per cent of the business comes from Telangana while remaining 29 per cent is from AP. Like many other regional rural banks, APGVB is also facing staff crunch as attrition levels are hovering around 30 per cent.
