JK Bank to install 150 ATMs this yr in JK

JK Bank to install 150 ATMs this yr in JK

Bank has secured 50 licenses from RBI: Dr Drabu, Shareholders to get 155 pc dividend

BILAL HUSSAIN



Srinagar, July 19: The J&K Bank will be installing 150 ATMs in the state this year. The bank has secured over 50 licenses from the RBI for setting of new branches in the state.
This was revealed by chairman and CEO, JK Bank, Dr Haseeb A Drabu while speaking at the 70th Annual General body Meeting (AGM) of the Bank at SKICC.
"The new vision of the Bank is to engender and catalyze the economic transformation of Jammu and Kashmir," Dr Drabu said, adding that the Bank has changed its policy by moving from investments to advances.
"The major part of deposits that the bank mobilized were invested in the government securities and corporate bonds. However, now the Bank lends its major part of deposits," Dr Drabu said.
"In 2000, more than half of our deposits were lent to government, be it center or the state government, which has come down to one third now."
In reply to a question by a shareholder about "understaffing" in the bank, Dr Drabu said in the coming days there would no such problem.
Many shareholders raised the queries relating to ATMs like lack of on and off site ATMs in rural areas, non-functioning, etc. Dr Drabu said the ATM installation in a particular area depends on the number of accounts having ATM cards in that area, frequency of transactions, etc. "This year we are going to install 150 ATMs in the state," he adds.
On the issuance of the bonus shares to the existing shareholder, Dr Drabu said that there is no such consideration at present with the board of directors of the bank. He also disclosed that the bank has secured over 50 licenses from the RBI (Reserve bank of India) for setting of new branches in the state.
"We have 75 to 80 per cent of our investments in less than 1 year papers," Dr Drabu said, adding that the bank has earned money without making any losses in the treasury operations, while other banks have suffered huge losses. "We have made money without any losses," he adds.
It was unanimously approved in the meeting to pay 155% dividend to the bank's shareholders for the year 2007-08.
"The credit-deposit ratio of the bank has gone up from 37 per cent in 2000 to 50 percent in 2004 and has peaked at 68 per cent in 2008. The shift from investment to advances has been a major change, officials believe."
"The bank has started lending more within the state. The business of the bank within J&K has been growing annually by about 35 per cent, compared to less than 10 per cent earlier. The credit given by the bank within the state is now 45 per cent of the total credit portfolio of the bank, as compared to less than 35 per cent in year 2005-06."
"The commercial credit outstanding in J&K was Rs 6275 crore in 2008 as compared to Rs 37561 crore in 2006 registering a phenomenal growth of 66 per cent over two years.
"The productive lending in the form of commercial credit to small and medium enterprises, horticulture, retail, trade, mortgage, and personal consumption has increased manifolds. The share of bank's lending to state government has come down from 29 per cent in 2001 to 13 percent in 2008."
"The bank has got deeper penetration in the state by creation of seven zones within the state. This has resulted in a much more intensive focus being given by the bank's business development teams," he said.
The bank has been working out processes, products and procedures, which has help the bank to reach out to people, empower them and enhance their capacity to make their result-oriented choices, believes Dr Drabu.
JK centric strategy and stand on reaching out to people with less means, profitably has been justified. Not a single beneficiary out of all 400 casedes has defaulted in repayment. "The Ganderbal branch is a zero-NPA branch," he adds.
A new-look of the bank's website was also dedicated to the shareholders and public on the occasion. Introduction of an 'investor relations link' on the website was appreciated by the audience. This would help investors and shareholders to have an update on the Bank's performance, policies and procedures, officials said.
Earlier the bank has posted an operating profit of Rs 651.84 crore up by 17 per cent at the end of March 2008 as compared to the financial year 2006-07. Total income of the bank increased by 30.09 per cent at Rs 2679.24 crore. This includes interest income of Rs 2434.23 crore and other income of Rs 245.01 crore.
Provisioning on account of bad and doubtful debts was reduced by 58 pc to Rs 30 crore as against Rs 71.57 crore past fiscal. As a result the provision cover has marginally come down to 58.05 pc (61.43 pc past fiscal). The Bank has ended the financial year with NPA at 1.08 pc compared to 1.13 pc as at end of preceding year.
Among others, the meeting was attended by executive directors of JK Bank, A K Mehta and A M Mir, Secretary to the bank, Parvez Ahmed, Directors on the board of JK Bank, senior officers of the bank, former directors and executives of the bank.
A corporate film depicting as to how the bank had been instrumental in empowering people and changing lives was also screened on the occasion.