Deccan Grameen Bank has plans to set up 20 new branches in the country in the upcoming financial year. The bank is a regional rural bank under the sponsorship of State Bank of Hyderabad (SBH). 10 branches out of the proposed 20 are to be set up in Hyderabad itself.
The bank also has recruitment plans this year at the officer level, said DGB chairman SB Roy. He further announced that the 215 branches through which the bank currently operates are all under core banking solution.
Deccan Grameen Bank has a total business of around Rs. 3, 645 crore which comprised of deposits worth Rs. 2, 121 crore and advances worth Rs. 1, 524 crore. The quarter ended December 2009 reported a profit of Rs. 42.48 crore earned by the bank. The bank was hopeful that it would be able to touch Rs. 50 crore profits by the end of this fiscal.
Gross NPAs of the bank stood at at 1.15 per cent (Rs 17.5 crore). The bank did not have any net NPAs. This data has been furnished by State Bank of Hyderabad managing director, Renu Challu.
She also said that DGB had rescheduled Rs. 80 crore kharif 2009 loans on account of drought.
SBH will be receiving capital infusion from SBI this year so as to maintain the desired capital adequacy ratio, Challu further added.
She said the bank would be facing pressure in maintaining its net interest margins (NIM) owing to the tightening of policy measures by the apex bank, RBI. The bank's liquidity position is also likely to come under pressure. She expressed her views that the RBI may further tighten the policy norms.