SMGB clocks Rs 21.53 cr profit

Kozhikode, May 21 (UNI) The regional and rural banking major South Malabar Gramin Bank has posted a Rs 21.53 crore profit during the fiscal 2006-2007 as against Rs 17.03 crore during the corresponding period last year.

The profit was achieved after recording a total business of Rs 3,144 crore during the fiscal as against Rs 1,736 crore last year, registering a 26 per cent growth, SMGB chairman N S Bose told reporters here today.

The annual credit disbursement of the bank has touched an all time high of Rs 1,768 crore with average loan amount remaining at 25,000 implying that large number of small borrowers were benefitted, he said.

The bank has increased its credit disbursement to Rs 1,208 crore as against Rs 960 crore of previous year as per the Central government policy of doubling credit flow to agriculture sector in three years. The total credit disbursement under annual plan was Rs 2,433 crore against the allocation of Rs 1,365 crore registering an achievement of 115 per cent, he said.

The bank has waived Rs 24.17 lakh loan taken by 79 farmers reeling under debt following crop failure, he informed.

On future plans of the bank, he said a target of Rs 4,000 crore has been set for the 2007-08 fiscal and opening of eight money-lender free villages in the region to help the farming community.

The bank also proposed to start core banking, 25 ATMs, roof top vegetable gardening, agro processing units, agro-tourism and 20 new branches in the region, among other things, he said.

The Central government has a majority of 50 per cent stakes in the bank followed by 35 per cent by the Canara Bank the rest 15 per cent by the Kerala government, he added.

UNI