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Monday, September 17, 2012

Allahabad Bank aims at 17% growth; to focus more on retail

Allahabad Bank expects a business growth of 17-18 per cent this fiscal through its increased focus on its retail segment. After registering a sluggish growth in the first quarter, the bank expects an improvement in business in the current quarter.

“We are seeing improved business climate in the current quarter and are hopeful of credit offtake picking up in the later part of the year. Retail and SME sectors are expected to drive growth of the bank this year,” T.R. Chawla, Executive Director, said.

Distressed assets, however, continue to pose a challenge. The size of its distressed assets is expected to go up from Rs 2,300 crore at the end of the last quarter to Rs 2,800 crore this quarter. “We have stepped up our recovery efforts,” he told media persons here.

The bank is aiming at increasing the share of its retail business from the current 15 per cent to 20 per cent in the next two years. “We are adding 250 new branches to our network of about 2,500 in the current fiscal. We intend to keep on adding 250 branches every year for the next three years,” Chawla said.

Having recently taken on board 1,600 probationary officers, the bank will be hiring 1,200-1,300 clerks this fiscal to support expansion efforts.

It is also adding 1,000 new ATMs this fiscal.

On overseas plans, Chawla said the bank had received a clearance to open a branch in Dhaka, which should be completed by the end of this fiscal. Plans are on to set up branches in Hong Kong and Singapore.

He said the bank was comfortable in terms of capital adequacy and would not look at raising new funds this fiscal.


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