//South Indian Bank help Gujarat by collecting money from Gulf Malayalees

South Indian Bank help Gujarat by collecting money from Gulf Malayalees

South Indian Bank posts highest CD ratio in Gujarat

Our Regional Bureau / Mumbai/ Ahmedabad May 23, 2006

In Gujarat, the advances are of around Rs 140 crore and deposits were Rs 66 crore resulting CDR of more than 200 per cent.
However, CDR of the bank in Kerala was just 55 per cent. "We are opening a new branch in Rajkot this year and are applying for a license for Gandhidham," said V A Joseph, chairman and CEO of SIB.
"Now we want to double our business in Gujarat from Rs 300 crore to Rs 600 crore by the next year," said Joseph.
Out of total business of SIB of around Rs 16,000 crore, the three branches — one each in Ahmedabad, Vadodara and Surat in Gujarat contributed total of around Rs 300 crore.
"Currently, we have 450 branches across the country and 25 new branches will be added this year including one in Rajkot," he said.
Joseph further added that by 2008, the bank's turnover will be around Rs 25,000 crore with 500 branches across the country.
"We have marked our presence in 19 states and during next year we will open branches in four more states which include Assam, Jammu & Kashmir, Uttaranchal and Jharkand," Joseph added.
In 2004-05, SIB's NPA was 3.81 per cent which was reduced to 1.86 per cent in 2005-06.
"By 2008, we expect to nil our NPA. The total recovery during the last year was about Rs 161 crore as against Rs 114 crore during the previous year," said Joseph.
However, the bank is currently looking for a tie-up with three mutual fund companies.
"We are planing to join hands with Reliance, Templeton and Sundaram for mutual funds," said Joseph. He added that the bank have around 30 per cent NRI depositors requesting for mutual fund schemes.
Talking about core banking, Joseph said the bank has already covered 93 per cent under the core banking.
"SIB migrated 300 branches online by December, 2005 and by March, 2007, all our branches and extension counters will be brought under online facility," he said.