Gramin Bank of Aryavart to add more branches, BCs
Will lean towards technology and trading for growth:
Will lean towards technology and trading for growth
The Gramin Bank of Aryavart came into being on 1 April 2013 after the amalgamation of 2 RRBs Aryavart Kshetriya Gramin Bank and Shreyas Gramin Bank. The former was sponsored by Bank of India while the latter was sponsored by Canara Bank. Postamalgamation, Gramin Bank of Aryavart has its head office at Lucknow under the sponsorship of Bank of India.
Today, the bank operates in 15 districts in UP - Lucknow, Barabanki, Farrukhabad, Hardoi, Kannauj, Unnao, Faizabad, Mainpuri, Firozabad, Aligarh, Etah, Hathras, KashiRam Nagar, Mathura and Agra. It has a network of 706 branches and 12 regional offices. It is using shared ATMs of various banks for serving its customers. According to S.B. Singh, chairman of the bank, the bank plans to increase the branch network to 720 by March 2019. “Added to that, we have 1856 BCs equipped with micro-ATMs. We propose to provide 650 microt-ATMs at cash counters of all our rural branches by 30 September 2018,” adds Singh.
EXPANDING CUSTOMER BASE
The bank has a customer base of 12.13 million as on 30 June 2018 against 12.09 million just 3 months ago. The bank always gives a thrust on better customer connect through personal contact, relationship banking, special attention to good customers viz senior citizens, teachers and other salaried class drawing salary from its branches. It extends need-based services/products and credit facilities to its customers to increase their income and sustainable growth. Says Singh: “We organize literacy camps through our financial literacy counsellors and spread awareness through our mobile vans ‘Aryavart Vikas Ruth’ in rural areas. We expect the customer base to increase to 12.5 million by March 2019.”
The bank has also covered all its borrowers under ‘Aryavart Free Accidental cum Disability Insurance scheme’ by providing a cover of `200,000 against accidental death or permanent disability due to accident. This insurance is absolutely free for all borrowers.
BUSINESS UP FOR FARMERS
During FY 2017-18, the bank extended maximum credit to agriculture and MSME sectors for income generating opportunities of rural households. As on March 2018, its agricultural advance was of `94.5 billion and MSME sector advances `8.5 billion. During FY 2017-18, advances to the MSME sector achieved maximum growth of 27.52% followed by non-priority sector at 25.49%. The bank has also achieved 101.68% of its target under Pradhan Mantri Mudra Yojna (PMMY) for FY 2017-18.
Singh speaks about growth: “Our deposits have increased to the tune of `143.90 billion as of Q1, 2018-19 from `139.84 billion 3 months ago. As of March 2019, the deposit budget is `161.17 billion. Similarly, in Q1 of FY 2018-19, our advance outstanding was `113.81 billion as against `113.59 billion as on 31 March 2018. The loan budget for March 2019 is `130.63 billion.”
The main focus of the bank during FY 2018-19 has been increasing agricultural term loan advances and MSME sector advances. The intention is to provide maximum capital support through credit extension to the rural households for increasing their income within the purview of national agenda of ‘Doubling of Farmers’ income by 2022’.
The bank has also launched Aryavart Star Mission since 2 October 2017, for identifying 125,000 families through its branch network in 15 districts and intend to cover the entire command area by 2020 for the purpose of doubling of income of rural households. Singh elaborates on this strategy: “By now, we have identified all families and they have been credit linked for minimum one activity, which will be extended to second, third and fourth activities as per the needs of the borrowers. The core of the mission is to finance multiple activities, mainly for providing gainful employment to all the adult members of the families for 200 to 250 days per year, to facilitate debt swap to reduce high cost of
formal/informal borrowings and to provide coverage under social security schemes such as PMSBY, PMJJY & health insurance etc.”
All the 706 branches and regional offices of the bank are on CBS platform. All the branches offer RTGS/NEFT facility. The immediate plans include enhancing fraud prevention measures using biometric authentication (for staff as well as customers) to avail eKYC in collaboration with UIDAI. “The idea is to make customers feel secure while using our facilities and preventing frauds by impersonation. We are also planning to introduce facilities like mobile banking, IMPS and ME-POS, etc, during FY 2018-19 to enable our customers take up for digital transactions,” says Singh.
The rural customers of the bank are availing banking services at their door steps through micro-ATMs at BC points and mobile vans. Singh says these customers are highly satisfied with the IT-enabled services of the bank.
MAIN IT VENDORS
The bank has partnerships with a number of IT companies. Says Singh: “We have Finacle (version 7.0.18) for our CBS platform. We get technology support from EIT-DXC Technology and we now intend to upgrade this version to a higher one. Our eKYC processes are managed by by Miscot and CKYC by Adroit. The biometric authentication process is supported by IDEMIA. FI is supported by TCS and the entire network is supported by HP and DSM for branch and link maintenances. FIS Global manages our ATM facility, while ACL Technologies looks after SMS banking service.”
DRASTIC NPA REDUCTION
The bank’s gross and net NPA have come down significantly to 9.91% and 4.21% respectively as 31 March 2018 from 16.11% and 10.66% respectively a year ago. Provision coverage ratio was 60.03%. The bank has been regularly organizing camps to spread product awareness among rural masses and to boost recovery in NPA accounts. Special attention is paid on recoveries in NPA accounts of those with balance of `1 million and above. Customers of high NPA branches are personally contacted by dedicated staff at the regional offices to ensure timely recovery. Emphasis is also given on cash recoveries for KCC rollovers. The bank will be maintaining asset quality by monitoring early warning signals and initiating corrective measures.
Says Singh: “Our target for March 2019 is to achieve gross NPA of below 5% and net NPA of below 2%. The major NPA strategies include contacting customers with high NPA, OTS, use of Lok Adalats, filing RCs and coordination with revenue authorities for early action as well as filing suits and action under SARFAESI Act 2002 for all eligible accounts.”
EXPANSION & HR PLANS
The bank has increased its staff strength from 3260 as on 31 March 2017 to 3956 as on 30 June 2018 to meet increased business requirements. Implementation of biometric login authentication is under process and this will be fully functional during this year. The bank has a staff welfare fund to take up various welfare activities.
The bank is proposing to add 14 new branches this year. It is also planning to make HRMS live for all staff members during the year. There is adequate provision in the budget for in-house training programs as well as for those organized at national centres such as BIRD, NIBM and PNB-IIT for skill development of the staff.
Aryavart Vikas Ruth
SB Singh outlines how the bank plans to achieve gross NPAs below 5% and net NPAs below 2% in the current FY
Launch of Aryavart Free Accidental Insurance