Page 8 - Banking Finance September 2021

BANK UPDATE

to reduce their branch numbers is prov- United Bank of India were merged The MoU signed in the presence of Mr.
ing godsend for lenders looking to ex- with it from April 1, 2020. Canara Bank Hemant Tamta, Executive Director,
pand their network. merged or closed 105 branches after Bank of Maharashtra &Mr. G.S. Rawat,

The branches being vacated by Bank of taking over Syndicate Bank on April 1, Chief General Manager, NABARD,
2020. Maharashtra Regional Office, Pune. It
Baroda (BoB), Punjab National Bank
is on a collaborative approach to en-
(PNB), Canara Bank, Union Bank of Union Bank of India merged or closed
hance rural prosperity through conver-
India (UBI) and Indian Bank have 275 branches after the amalgamation
gence of the institutional lending &
opened the doors to ready-made pre- of Andhra Bank and Corporation Bank
ongoing development initiative. The
mises for other lenders. For the latter with it from April 1, 2020. Indian Bank
set, network expansion happens faster, rationalised 203 branches after absorb- MoU has been signed by Mr. M.A.
at reasonable costs (as owners of these ing Allahabad Bank from April 1, 2020. Kabra, General Manager, Credit Prior-
premises are desperate to rent them ity - Agriculture, FI & SLBC, Bank of
out) and without the hassle of re-do- Bandhan Bank registers Maharashtra & Smt. RashmiDarad,
ing interiors. General Manager, NABARD,
8% YoY growth Maharashtra Regional Office, Pune.
To cut down on operating expenses, Bandhan Bank registered an 8% year-
the five PSBs have been merging or on-year growth in its advances for the Considering the common interests in
rationalising branches after the amal- first quarter this fiscal. However, on a the specific area of promoting agricul-
gamation of banks with them. quarter-on-quarter basis, advances fell ture and rural development, Bank of
AS Rajeev, MD & CEO, Bank of 8%. Maharashtra & NABARD will work to-
gether to boost ongoing developmen-
Maharashtra, observed, 2530 per cent
In a stock exchange filing, the Kolkata- tal initiatives which will benefit the
of the branches opened by BoM last
based lender said for the quarter Farmers, Farmer Producer Organiza-
year were in the premises vacated by ended June its loan and advances in- tions, Joint Liability Groups, Self Help
the PSBs. "The rent is comparatively creased approximately to Rs 80,128 Groups, Rural Artisans, Weavers,
less. That is why our rent outgo is not crore from Rs 74,331 crore for the Agripreneurs, Agri Start-ups, Micro,
increasing despite the rise in the num- year-ago period. Loan and advances Small and Medium Enterprise, etc. in
ber of branches," he said. BoM, which stood at Rs 87,043 crore at the end of the State of Maharashtra.
opened 82 branches last year, plans to March quarter last fiscal.
open about 100 in FY22. Mr. Hemant Tamta said that Bank of
Total deposit during April-June grew Maharashtra being the lead bank in
BK Divakara, CFO, CSB Bank, noted 28% y-o-y at Rs 77,336 crore, while it the Maharashtra state is effectively
that 30-40 branches opened in 2020 witnessed a degrowth of 1% Q-o-Q shouldering responsibility since 1976 as
and so far this year have been at pre- from Rs 77, 972 crore in January-March. Convener of State Level Bankers' Com-
mises vacated by a PSB. Divakara said The bank's overall collection efficiency mittee. He also appreciated the role of
the bank opened 101 branches last for June was around 80% (considering NABARD Regional Office being Chair-
year and plans to open 200 this year. all customers, including NPA customers) man of the SLBC Sub-committee on

CSB Bank actively scouts for ready-to- against around 96% in March. Agriculture. NABARD is taking all ef-
move premises being vacated by PSBs Collection efficiency for the forts towards pro-active & supportive
to avoid overlap of branches. These microfinance segment in June fell to approach in terms of guiding the Mem-
premises usually come with a strong- around 72% from around 95% in ber Banks & LDMs in the State to fo-
room (constructed to central bank speci- March this year. cus on Agri. Investment Credit / Term
fications), counters and furnishings. Loan lending.
Bank of Maharashtra signs
After the amalgamation of Dena Bank 'With signing of this MoU, Bank of
and Vijaya Bank with BoB on April 1, MoU with NABARD Maharashtra & NABARD put together
2019, the latter merged or
Bank of Maharashtra (BoM), a premier will reach greater heights in term of
rationalised 1,310 branches. public sector bank in the country, has overall development of Rural areas in
PNB rationalised about 430 branches signed MoU with NABARD in a function Maharashtra State' opined Mr.
after Oriental Bank of Commerce and organized at Head Office of the Bank. Hemant Tamta.

8 | 2021 | SEPTEMBER | BANKING FINANCE