AP Ma­hesh Coop Bank ..................

Sees tremen­dous growth in digital trans­ac­tions and tar­gets `10,000 Crore busi­ness turnover:

Banking Frontiers - - Contents -

A.P. Ma­hesh Co­op­er­a­tive Ur­ban Bank has 43 branches, of which 34 are lo­cated in the twin cities of Hyderabad and Se­cun­der­abad. The other branches are spread across Andhra Pradesh and Te­lan­gana. The bank also has branches in Mumbai, Jaipur and Bhilwara in Rajasthan.

The bank launched Bharat Bill Pay­ment Sys­tem (BBPS) por­tal at its 40th foun­da­tion day cel­e­bra­tions on 9 Au­gust 2017 at Hyderabad. It is the sec­ond bank among those which have im­ple­mented BBPS fa­cil­ity in Te­lan­gana and the first bank among multi state co­op­er­a­tive ur­ban banks in Andhra Pradesh and Te­lan­gana to do so. The bank’s chair­man Pur­shotam­das Mand­hana, chair­man-emer­i­tus Ramesh Ku­mar Bung, vice chair­man Ram­pal At­tal, direc­tors and for­mer direc­tors and MD and CEO Umesh Chand Asawa were present at the launch.

GROWTH IN CARDS, ATMS

Ma­hesh Bank in­tro­duced RuPay ATM cards in 2010 and sub­se­quently launched RuPay debit cum ATM card in 2012. Later, it also in­tro­duced RuPay debit card with EMV stan­dards. Asawa says 11,296 RuPay debit cards with EMV have been dis­trib­uted since Au­gust 2016. Of these, 9645 were branded as ‘Classic Debit Card’. While 6245 ATM cards of the bank have been con­verted to debit cards in the last 12 months, 4211 debit cards have been con­verted to EMV cards dur­ing the same pe­riod. Twelve branches have ATMs, which are SS22E model from NCR. He added that the bank is plan­ning to de­ploy 10 ATMs – both on­site and off­site -in 2017-18.

The av­er­age trans­ac­tions through ATMs is ap­prox­i­mately 100-150 per ATM per day and the bank en­sures that the ATMs con­tain cash dur­ing all working days and long week­ends / pub­lic hol­i­days.

US­AGE PAT­TERN

The bank has been see­ing 15.060 debit card online trans­ac­tions on an av­er­age ev­ery month, ris­ing from 11,261 six months ago. Post de­mon­e­ti­za­tion, cus­tomers have started us­ing debit cards for pur­chase of goods and ser­vices ei­ther online or through POS ter­mi­nals. The us­age pat­tern is in­creas­ing for pur­chase of low value goods/ ser­vices at var­i­ous mer­chant lo­ca­tions where POS trans­ac­tions are pos­si­ble. In ad­di­tion, debit cards are in­creas­ingly used in the last 12 months for bill pay­ments - travel, ho­tel book­ings, recharges of tele­phones, DTH, elec­tric­ity etc.

Says Asawa: “The growth in card us­age matches the growth in the in­dus­try. The to­tal num­ber of cards has in­creased to 20,940 as of Q1, 2017-18 from 11296 just 3 months ago against the to­tal num­ber of ATMs re­main­ing the same at 12. Still, we strongly be­lieve that we need to ex­tend the card us­age and ed­u­cate the staff and cus­tomers as part of con­tin­u­ous ef­forts. We are working on some of the as­pi­ra­tional projects with the gov­ern­ment of Andhra Pradesh and we ex­pect the card us­age to in­crease sig­nif­i­cantly.”

CAP­I­TAL IN­VEST­MENT

The bank has seen lower re­turn on in­vest­ment on ATMs in ru­ral area com­pared to ur­ban ar­eas. Asawa ex­plains: “In­stead of ATMs, we are plan­ning to have a BC network in such such ar­eas where the cost of op­er­a­tion is rel­a­tively low. The cap­i­tal in­vest­ment made so far is ap­prox­i­mately `4-5 lakh per ATM lo­ca­tion, in­clud­ing in­fra­struc­ture. The av­er­age op­er­at­ing cost per ATM lo­ca­tion is `25-35,000 per month.” A slight in­crease in opex for ATMs arises due to in­crease in main­te­nance and man­power cost since the last 12 months. Ide­ally, all the banks in­cur sim­i­lar ra­tio of opex to capex in ATM de­ploy­ments. Asawa says opex has been ap­prox­i­mately `30-40,000 per ATM now.

Umesh Chand Asawa em­pha­sizes that the bank will lead by ex­am­ple in the re­gion for in­tro­duc­ing new ideas in bank­ing ser­vices

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