AP Mahesh Coop Bank ..................
Sees tremendous growth in digital transactions and targets `10,000 Crore business turnover:
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.
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.”
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