The North Malabar Gramin Bank has achieved a 30 per cent increase in net profit for the year ended March 31, 2011.
The net profit for the year reached Rs 14.74 crore from Rs 11.40 crore in the previous year. The increase in net profit would be 61 per cent, taking into account the high provision made for non-performing assets (NPAs) and the disbursement of arrears on salary hike during the year, according to Mr V.K. Saigal, Chairman of the bank.
The business reached Rs 4,706 crore from Rs 4,104 crore as on March 31, 2010, recording a growth of 14.80 per cent. Deposits rose to Rs 2,190 crore and advances to Rs 2,516 crore, registering a credit-deposit ratio of 114 per cent, the highest in the State. Low-cost deposits grew by 17 per cent and formed 33.4 per cent of the total deposits.
Regarding advances, the bank said it focussed on priority-sector lending in line with the objectives of the regional rural banks.
The priority sector advances at Rs 2, 209 crore surpassed the mandatory level of 60 per cent and reached 87.88 per cent during the year. The bank's share of advances under various government-sponsored schemes also exceeded targets.
The net NPA of the bank stood at 2.02 per cent at the end of the year, and the bank managed to recover bad debts to the tune of Rs 30 crore during the year.
The bank, spread over seven districts in the State and comprising 185 branches, two extension counters and three satellite offices, has been fully computerised and work is on to bring all the branches under core-banking solution (CBS) by September 30, 2011. As many as 46 branches and one extension counter have already migrated to CBS this year.
The bank was planning to open 25 or more new branches to expand the business to Rs 5,700 crore in the current year, Mr Saigal said.