core sector communique

INDIAN BANK – TAKING BANKING TO THE
DOORSTEP OF EVERY INDIAN

·         Indian Bank, established on 15th August 1907 as part of the Swadeshi Movement, proudly shares its founder’s day with Nations’ Independence Day.  Indian Bank was one among the 14 Banks nationalized on July 19, 1969 when it had mere ` 154 crore of Business.  Indian Bank’s business has multiplied, manifold and crossed the mark of ` 1.60 lakh crore as on date.

·         As on date, the total business of the bank has crossed ` 1.62 lakh crores with Deposits over ` 96,000 crores and Advances over ` 66,000 crores.  The deposits have shown a growth of 21.25% and advances at 27.72% on an year on year basis.

·         The CASA Deposits have grown to 31.26% as on date and we target a level of 35% by year end.

·         The CD Ratio has reached a level of 70% from 66.42% (position as on last year).

·         Operating Profit of the Bank for 2009-10 stood at ` 2747 crore with a Net Profit of ` 1555 crores.  (Y-o-Y growth of 33.64 % in operational profit and 24.87 % in net profit)

·         The net profit for June 2010 stood at ` 368.15 crores showing a growth of 11%.

·         The Bank has achieved 18.73% in Agriculture Advances (as against 18% prescription) and has crossed ` 10,000 crores in Agricultural Loans.

·         Micro Finance Portfolio has crossed ` 2000 crore mark with 27 exclusive Microsat branches.  Indian Bank has the highest Education Loan Portfolio among Nationalized Banks and has crossed ` 2600 crore as on date.

·         Bank has  Pan India presence with 1768 branches, all under 100% CBS.  

·         Bank has 2 overseas branches in Singapore and Colombo.

·         The Bank has opened 114 new branches in the year 2009-10.  This year proposes to open 175 branches in which 7 in West Bengal and 50 outlets i.e 18 branches and 32 ATMs being opened on 29 09 2010)

·         Bank provides 24/7 Banking service through 1018 ATMs spread all over the country with 68 Biometric ATMs.

·         Bank has three Subsidiaries and Sponsored three Regional Rural Banks (RRBs).

·         Public Listed Bank with 80% holdings by Government of India and 20% with general public.

·         Shares issued to the public at ` 91/- during Initial Public Offer in February 2007, present quotation is ` 269 (as on 22 09 2010) with Earning per share of ` 35.09 (annualized) with Market Capitalization of ` 11560.81 crores as on 22 09 2010.

·         Gross NPA to Gross Advances is 1.45 % with Net NPA at 0.76 % (as at June 30, 2010).

·         Provision Coverage Ratio is more than 83 %

·         The Bank has a healthy Net Interest Margin of 3.71%

·         Capital Adequacy Ratio is 12.50% out of which Tier I Capital is 10.32%

Customer Service :

·         Bank aims at bringing technology to the common man 

·         Customers are provided with CD giving details of Banks IT products.  

·         Bank is providing Internet Banking (for both Individual and Corporate Customers)

·         Mobile Banking facility for the customers.  Customer alerts are provided on transactions in the accounts through their mobile.

·         On Line Customer Complaint Redressal facility has been introduced.

·         Customerfirst.cmd@indian-bank.com – wherein customers can send emails with suggestions / complaints directly to the Chairman and Managing Director.

New Schemes :

·         Jewel Loan for senior citizens at concessional rates.

·         Combo loan of housing, vehicle and retail

·         Applications Supported by Blocked Amount (ASBA).

·         Supreme Current Account

·         New Deposit Scheme – Inddouble

·         Festive Home Loan Schemes at 8% interest rate.

 

 

RURAL BANKING INITIATIVES

·         Priority Sector lending has always been niche area for the Bank.  Priority Sector credit of the Bank has increased by ` 2135.17 crore during this fiscal (as on 17 09 2010) to reach 21664.94 crores.  It constituted 40.01% of Adjusted Net Bank Credit (ANBC) as against the prescribed norm of 40%.

·         Agriculture credit has increased by ` 900.43 crore during this fiscal (as on 17 09 2010) to reach 10044.42 crores.  The Bank has always been regularly reaching targets under Agriculture credit and mandated norm of 18%

·         The Bank has financed 432 new farmers per Rural and Semi Urban branch during 2009-10 against the Govt. of India stipulation of 250 new farmers. Likewise, the share of Small farmers/Marginal Farmers financed to total Direct Agri Finance was 56% against the norm of 40%

·         Weaker section advances of the Bank stood at ` 5998.25 crores , which is 10.08% of the credit against the RBI norm of 10.00%. Of which, advances to SC/ST beneficiaries stood at ` 1952.25 crores.

·         Credit to Minority communities was to the order of ` 3361.28 crores, which was 14.20% of the total Priority sector credit.

 

·         Under SHG Bank linkage Programme, the Bank has upto August 2010 credit linked 4.15 lakh  SHGs cumulatively. During this fiscal, 55638 have been assisted with loans amounting to ` 500.33 crores. The outstanding credit to SHGs amounts to ` 1972.76 crores covering 193459 SHGs.

 

·         In extending Educational Loans, the Bank stands in the second position next only to State Bank of India at all India level and it is the Number one among the Nationalised Banks. The outstanding as on 20 09 2010 Educational loans amount to ` 2655.99 crores benefitting 170691 students

 

 

PROGRESS UNDER FINANCIAL INCLUSION

 

• Indian bank has opened 22.90 lakh “No frill” accounts upto August 2010 and has covered 4637 villages for Financial Inclusion.

 

 

 

 

FI PRODUCTS:

 

• Overdrafts have been allowed in No frill SB accounts to 45,653 beneficiaries disbursing ` 3.57 crores.
• General Credit Cards (GCC) have been issued to 7025 beneficiaries involving an amount of ` 8.03 crores.
• Covered 1.30 lakhs beneficiaries under Janashree Bima Yojana scheme & 16220 beneficiaries under Universal Health Care Policy scheme.      
• Launched BC model through Smart Card Banking Technology Solution (Electronic Benefit Transfer) scheme in Chittoor Dist. of AP.
• Indian Bank has opened 43,441 accounts for NREGS and 23,649  accounts for Social Security Pensions through Smart cards in Chittoor District
• Engaged 60 Business Facilitators across the country.
• Under Urban Financial Inclusion,  Indian Bank has opened a Branch in Dharavi ,Mumbai, the largest slum in Asia with two onsite and one offsite ATMs  with CBS facility.

 

• Indian Bank has established 27 Specialized Microfinance branches throughout the country which function as:-
•  Exclusive delivery channel for Urban SHGs
•  “One stop shop” for all the financial needs
•  Liasing with the NGOs in the area and encouraging them to form  SHGs/ JLGs
• Indian Bank has established 20 Banking Service Centres (BSC) across the country, Manned by own Bank staff.
• An extended arm of regular branch located in a village frequently visited by people from surrounding areas.

 

 

 

 

• Internet Banking model developed in association with TCS that Provides :
• Financial Services like Cash Receipt and payment, Balance enquiry, transfer transactions
• Non Financial services like Agro Technology, weather forecast, Commodity price movement, health, Education, etc. are also provided.

 

• Also established 2 Financial Literacy and Credit counselling centres (FLCC) and 5 Indian Bank Self Employment Training Institutes (INDSETIs)
• Indian Bank has installed 68 Biometric ATMs in various parts of the country for the SHGs to have 24X7 services with dual thumb/finger print identification so that group members can jointly operate the ATMs at ease.

Financial Inclusion Plan

 

Indian Bank has been allocated with 1549 villages with population more than 2000.  

In addition, Indian Bank has planned to cover 4014 more villages with population 2000 and below in 19 States

Thus it is planned by Indian Bank to provide banking services in all the 5563 villages through different delivery channels as under :-

ü  Opening Brick and Mortar Branches - 53

ü   Opening of Banking Service centres - 171

ü   Engagement of Business Correspondents - 5319

ü    Mobile Branches/ATMs – 20

Various other modes of delivery channels like Biometric ATMs, Low cost Rural ATMs, etc., are also proposed to be implemented.

 

Villages with population more than 2000 will be covered before March 2012.

 

Indian Bank to cover 10,000 villages with financial inclusion in next two years.

 

 

 

WEST BENGAL

·         In West Bengal, the Bank has branch network of 64 branches (Rural-11, 
Semi-urban-2, Urban-20 and Metro -31) and total business of ` 6916 crore 

·         The Bank proposes to open 7 new branches in West Bengal.

·         The Bank is having 24 ATMs as on date with 2 more ATMs to be opened shortly and 3 more ATMs in near future.

·         As on date, the total business of the bank is ` 6916 crores with Deposits of ` 4095 crores and Advances at ` 2821 crores.  The deposits have shown a growth of 12.52% ; advances at 22.92% and overall business at 16.54% on an year on year basis.

·         CD Ratio has reached a level of 68.91% from 63.08% as on last year.

·         The Bank has opened 26546 No-Frill Accounts and given Overdraft limits (OD) in 522 accounts -` 13.51 lakhs and General Credit Cards (GCC) have been given to 388 account.- ` 46.44 lakhs.

Financial Inclusion in West Bengal

·         Indian bank has opened 26546 nofrills account in 28 villages  

·         Sanctioned overdraft in 522 nofrills account to the tune of ` 13.51 lakhs and GCC to 388 beneficiaries to the tune of ` 46.44 lakhs  .

·         Under the FI Plan– Indian Bank has been allocated with 32 villages with population above 2000 and 17 villages with population 2000 and below- All the villages are proposed to be provided with banking services by March-2012.

·         Indian bank has also opened one exclusive Microfinance branch (Microsate branch) at Kolkata  to cater the need of the SHGs. This branch has assisted 2326 SHGs to the tune of ` 11.08 crores .