Allahabad Bank eyes business growth of 24 percent (Lead)

June 10th, 2011 - 5:22 pm ICT by IANS  

Kolkata, June 10 (IANS) The state-run Allahabad Bank has targeted a business growth of 24 percent during the current 2011-12 financial year, a top bank official said here Friday.

The bank has also projected a business level of around Rs.2,80,000 crore as in March 2012, chairman and managing director J.P Dua said in his address at the bank’s ninth Annual General Meeting.

The bank plans to increase its presence abroad by opening more overseas branches, Dua said.

Currently, it has an overseas branch at Hong Kong as well as a representative office at Schenzen, China.

To increase the resource base, the bank is planning to issue medium-term note (MTN) of around $500 million, Dua said.

“If we have to grow overseas, especially in Hong Kong, then we should have long-term resources. That is why there will be MTN issue,” he said.

The bank’s priority is to shed short-term loans and to go for long-tern loans, he said.

“Because when we go for short-term loans, the interest is low and when we go for long-term loans the interest is high,” Dua stated.

“Our Net Interest Margin (NIM) has increased to 3.38 percent from 2.94 percent in spite of competition,” he said.

The bank is also looking at opening around 150 branches and 500 Automated Teller Machines (ATMs) in the current financial year, Dua said.

“About 62 percent of our branches are in rural and semi-urban areas,” he added.

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