Kochi: Andhra Bank executive director Ajit Kumar Rath on Monday said the economic situation and liquidity surplus reports suggest there is a conducive environment for a further cut in the interest rates.
“However, the bankers are keeping their fingers crossed on a decision by the Reserve Bank of India,” he told reporters here on Monday.
The Hyderabad-based bank has charted a big expansion plan for Kerala, he said.
“The number of branches will go from the current 32 to 75 and the business will grow from Rs 2,000 crore to Rs 5,000 crore in three years,” he said.
“The bank will concentrate on agriculture, retail and micro, small and medium level enterprises (MSME) sectors in the state.”
Mr Rath noted that there has been a new momentum in the agriculture sector in the state, especially in organic farming, and said the bank will be part of it funding every aspects of it including logistics and warehousing.
The bank will also finance activities of self-help groups in agriculture, he said. The bank’s leap in profit is due t its ability to cut cost of funds and leverage technology.
“At present 60 per cent of the transactions are done through the electronic channel and the bank is targeting to make it 70 per cent,” he said.
