We are targeting to increase the total business by 60 per cent from Rs 3,450 crore to Rs 5,650 crore in 2004-05 and expect our net profit to grow in the same proportion, LKB Ceo RM Nayak told PTI, after inaugurating its ATM facility in Noida. The bank had registered a 14.32 per cent growth in profit at Rs 26.52 crore last fiscal, Mr Nayak said.
Considering that our recovery on net advances has been very high last year, we are targeting to cut down net NPAs from 6.05 to below three per cent this fiscal, he said.
In 2003-04, the bank could manage to recover Rs 35 crore of its Rs 80 crore bad loans, he added.
The bank has been quite aggressive in recoveries in the NPA accounts. We will not allow new NPAs this fiscal.
The CEO did not rule out an initial public offering or borrowing from the market for sustaining high growth, but said as of now we do not have any such plans as the bank has sufficient liquidity.
The banks capital adequate ratio stands at 16.54 per cent against the RBIs mandated requirement of nine per cent, he said.
The Kerala-based bank, which had started operations in 1940 with a modest amount of Rs 24,000, now has a capital base of Rs 140 crore, he said, adding we will increase branch network from 106 to 125 in this fiscal and achieve computerisation of 100 branches to offer anytime and anywhere banking to customers.