OREANDA-NEWS. July 25, 2011. Highlights of Performance in Q-1 of  FY'2011-12

Operating Profit surged to Rs.889.62 cr as at June,2011 as against Rs.705 cr as on 30.06.2010 showing a YOY growth of  26.26 %.

 Net Profit rose to Rs.418.13 cr.  during the Quarter ending 30.06.2011 as against Rs.347 cr as on 30.06.2010 showing a YOY Growth of 20.45%

Net Interest Margin (NIM) surged to 3.40 % during the Quarter ending June,2011 as against 3.10 % as on 30.06.2010.

Net Interest Income during the Quarter ending June,2011 surged to Rs.1175.55 Cr as against  Rs.850.34 crore as on 30.06.2010 recording a YOY Growth of 38.24 %

Fee-based income during the Quarter ended June,2011 surged to Rs.207 Crore as against Rs.170.29 Crore registering a YoY growth of 21.50%.

Total Business of the Bank increased to Rs. 2,32,558 cr. as on 30.062011 as againstRs.184038 Cr in June,2010 showing a YOY growth of 26.36 %.

Deposits of the Bank went up to Rs.1,33,818 cr. as on 30.06.2011 from Rs.108320  cr. as on 30.06.2010. Year-on-Year  basis, Total Deposits grew by 23.54 %

Gross Credit surged to Rs.98740 cr. as on 30.06.2011 as against Rs.75718 cr. as on 30.06.2010. Year-on-Year basis, the Gross Credit increased by 30.40%.

Credit Deposit Ratio rose to 74.12 % as at June,2011 end as against 70.30 % as on 30.06.2010.

Gross NPA to Gross Advances  reduced to 1.62 % as at June,2011-end as against 1.74% of March,2011.

Net NPA to Net Advances Ratio reduced to 0.60% as at June, 2011 as against 0.79% as on March,2011.

Provision Coverage Ratio increased to 79.90 % as on June,2011 as compared to 75.67% as on March,2011.

Capital Adequacy Ratio was  12.75 % as on 30.06.2011.

Business per Employee surged to Rs.11.09 cr as on June, 2011 as against Rs.8.83 cr. as on 30.06.2010.

Shareholders’ Value:

Earning per Share increased from Rs.7.77 as on 30.06.10 to Rs.8.78  as on 30.06.2011.

Return on Asset stood at  1.12  % as on 30.06.2011.

Book Value per Share increased from Rs.159.02 as on 30.06.2010. to Rs.187.41 as on 30th June’11

Capital Adequacy Ratio stood at 12.75 % as on 30.06.2011 as against the stipulated norm of 9%.

Retail Credit:

Total Disbursement under Retail Credit of the Bank during the June,2011 Quarter surged to Rs.677 crore as against Rs.542  crore during the corresponding period last year registering a growth of 24.88%.

Total Outstanding under Retail Credit as on 30.06.2011 rose to Rs.13270 crore as against Rs.10,518 crore as on 30.06.2010, constituting 13.44  % of Gross Credit of the Bank.

Bank has entered into a Tie-Up arrangement with M/S Tata Motors Ltd. for financing their vehicles with the Bank as preferred financier for them.

Bank has financed 2834 vehicles for commercial use under its Commercial Vehicle Finance Scheme during the Q1 of FY 2011-12 amounting to Rs.57 crore.

Outstanding under Bank’s Car and Mobike Loans increased to Rs.639 crore as on 30.06.2011 as against Rs.508 crore during the corresponding period ended June,2010.

Outstanding under Bank’s Housing Loan increased to Rs.3321 crore as on 30.06.2011 as against Rs.3258 crore as on 30.06.2010.

Total disbursement under Bank’s Housing Loan during the First Quarter of 2011 surged to Rs.154.43 crore as against Rs.130 crore as on 30.06.2010, registering a growth of 18.99% YoY.

Bank has dedicated Delivery Channels for Retail Lending through its 27 Centralized Retail Banking Boutiques (CRBB) with on-line application facility and 66 Retail Banking Boutiques (RRB) across the country, besides other Branches authorized to sanction/disburse Retail Loans. CRBBs have disbursed Rs.126 crore in the Quarter ending June,2011 as against Rs.106 crore in June,2010.

Bank ventured into financing against Gold Ornaments for its Customers. The disbursement under Gold Loan Scheme mounted to Rs.14.36 crore during the June,2011 Quarter as against Rs.1.52 crore in June’2010. The outstanding under the Scheme soared to Rs.45.17 Crore as on 30.06.2011 as against Rs.4.35 crore as on 30.06.2010.

Social Banking

Priority Sector Credit grew from Rs.24726 cr. as on 30.06.2010 to Rs.31404 cr. as on 30.06.2011 registering an absolute YoY growth of Rs.6678 cr (27.01%).

Outstanding Agriculture Credit increased from Rs.11598 cr. as at June,2010 toRs.13565 cr. as at June,2011 registering an absolute YoY growth of Rs.1967 cr (16.96%).

Credit to Micro & Small Enterprises (MSE) grew from Rs.8532 cr. as on 30.06.2010 to Rs.13666 cr. as on 30.06.2011  registering an absolute YoY rise of Rs.5134 Cr (Growth: 60.17%)

Credit to Micro, Small and Medium Enterprises (MSME) grew from Rs.10498 cr. as on 30.06.2010 to Rs.16312 cr as in June,2011 registering an absolute YoY growth of Rs.5814 cr ( 55.38%)

Credit to Weaker Sections increased from Rs.6211 crore as on 30.06.2010 to Rs.7998 crore as on 30.06.2011 showing an absolute rise of Rs.1787 crore (28.77% YoY)

Bank has two Regional Rural Banks (RRB)-One in Uttar Pradesh (Allahabad UP Gramin Bank, Banda) and another in MP (Sharda Gramin Bank, Satna). RRBs achieved Deposit of Rs.5247.91 crore during the Quarter ended June,2011 registering a growth of 14.48% over June,2010. Advances of the RRBs sponsored by the Bank increased to Rs.3302.67 crore registering a YoY growth of 18.43%.

Under Financial Inclusion Plan, out of 2618 villages having population of 2000 and above allotted to the Bank, Bank has covered 1145 villages by way of opening Branches in 5 villages, through Mobile Branch Service in 22 villages and Business Correspondent (BC) Models in 1118 villages upto 30.06.2011.

Bank has engaged three Technology Service Providers namely M/s Integra Micro System Pvt Ltd, M/s Vision India Software Exports Ltd and M/s Aurion Pro Solutions Ltd for providing banking services through BC Model.

The Bank has launched the Central Govt.’s “Aadhaar” Project for allotting Unique Identification Numbers to the Residents/Customers.

Technology:

Bank’s over 26 million Customers can avail Banking facilities of “Anywhere Banking”  through any of Bank’s 2416 Branches.

After launching of Bank’s First Mobile Banking Van with ATM at Dumka, Jharkhand last year, Bank’s second and third Mobile Banking Van  has been launched at Kasraila Branch under Sitapur Zone and at Khaira Branch under New Delhi Zone respectively

Bank issued more than 10.38 lac ATM-cum-Debit Cards. Bank’s total No. of ATMs surged to 315.

Bank has launched Mobile Banking facility for the Customers on 24th April,2011 , its 147th Foundation Day.

Bank is offering Internet Banking for individual and Corporate Customers apart from  SMS Banking, e-payment of Taxes & Bills , International ATM-cum-Debit Cards  etc.

Online payment of Direct Taxes (CBDT) and Indirect Taxes (CBEC)  provided through Internet Banking Channel for the Customers on 24X7 basis.

  Other Achievements:

Bank has achieved 1st Position in mobilizing LIC Policies and FPI amongst all the Partners of LICI for Life Insurance Business.

As many as 35178 Non-Life Insurance Policies of Universal Sompo General Insurance Company Ltd have been mobilized by the Bank during the Quarter ended June,2011 with Premia amounting to Rs. 17.89 crore.

Under Gold Coin Business, Bank sold as many as 14071 Gold Coins ( 137.751 Kg) during the Quarter ended June,2011, most of which took place during the first week of May,2011 on the occasion of Akshay Tritiya. 

New  Initiatives

With the opening of the Rural Branch at Jagatpur, the Total number of Branches of the Bank in India surged to 2416, of which 994 are Rural, 454 Semi-Urban, 508 are Urban and 460 are located in Metropolitan areas.

88 number of Authorisations are in hand for opening New Branches.

Bank has opened two Rural Self-Employment Training Institutes (RSETIs) during the first Quarter of FY 2011-12 in the Bank’s Lead Districts of Gonda and Balarampur in UP. With these two Institutes, Bank’s total number of RSETIs stood at 15- Nine in UP, Three in Jharkhand , Two in West Bengal and One in MP. As many as 1427 unemployed youths were imparted training by the Bank’s Rural Self-Employment Training Institutes during the Quarter, out of which 472 trainees were linked to Bank Credit.

During the Quarter ended June,2011, Bank has completed recruitment process of 1500 Probationary Officers. Process of appointing of 1100 Single Window Operators-A in Clerical Cadre has already been started during the Quarter. Recruitment drive for 10 Senior Managers (Treasury-cum-Forex) has already been initiated.

Central Processing Hub (CPH) for Clearing operationalised at 5 Centres. CPH –II for Back Office functions like Account Opening/Personalised Cheque Book Issue-Pilot implementation at Bangalore is under process.

Introduction of Fee Module in CBS for fee collection across Branches has been made operational.

INSTAPAY/INSTA COLLECTION Services for payment of Bills through Internet/Branch Delivery Channels are under process of implementation.

MERCHANT ACQUIRING BUSINESS through POS MACHINES is also under process of development.

EXTENSION OF CASH MANAGEMENT SERVICES TO LIC/CORPORATE CLIENTS- Central Office Account of LICI opened at Bank’s Fort Branch, Mumbai.

Processing of Central Government Pensions viz. Central , Civil, Defence, Railways and Telecom of all the Zones centralized at CPPC , Lucknow since April 2011.

ATM-cum-Debit Card and Internet Banking facility extended to all the Pensioners with effect from May 2011.

Future Plans

Bank has planned for 25% growth in Business to reach at Rs.2,80,000 crore and to increase the number of Branches to 2,570  within 31st March, 2012.

Bank has planned to open 155 Branches and 500 ATMs within the Financial Year 2011-12.

Bank has envisaged to cross Rs. 4.00 lac crore in Total Business , to increase the number of Branches to 3,000 and to open 2000 ATMs within next 3 year- horizon.

Bank has plans to open more  Branches Overseas which include one at Singapore, Shanghai, Dhaka(Bangladesh) and Kowloon (HongKong) for which ground work is in progress.

Bank has decided to establish 8 new Centralized Retail Banking Boutiques(CRBB) at prominent locations of the country viz. Pune, Indore, Jalandhar, Gurgaon, Baroda and one additional CRBB each at Mumbai, Kolkata and New Delhi.

Out of total 18,167 villages allotted to the Bank, Financial Inclusion Plan will be implemented covering 2,618 villages with population above 2000 within 31.03.2012 through Business Correspondents and 200 Biometric Rural ATMs and 15,549 villages with population of less than 2000 will be covered within 31.03.2014.

CBS implementation in the Bank’s sponsored 2 Regional Rural Banks will be complete by September 2011.

As a Registrar to UIDAI, enrolment and issuance of “Aadhaar” Unique Identification Numbers to the Residents of all areas allotted to the Bank under Financial Inclusion Plan has already been started and regular roll-out will be commenced shortly.

Out of 21 Rural Self Employment Training Institutes (RSETIs) planned to be opened by the Bank , 15 such Institutes have already been made operational and the remaining six Institutes will be opened shortly.

Bank will open 11 “Financial Literacy and Credit Counselling Centres” (FLCCs) shortly in Bank’s Lead Districts- Nine in UP, One each at West Bengal and MP out of 256 financially excluded Districts identified by RBI/NABARD.