Telangana Grameena Banks FY20 Net Profit Surges To ₹172 Crore

Telangana Grameena Bank’s net profit increased manifold at ₹172 crore in the financial year ended March 31, 2020 as against ₹43 crore in the previous financial year.

“The growth in profits was driven by increase in advances, reduction in cost of funds from 5.7 per cent to 5.5 per cent due to increase in Current Accounts and Savings Accounts (CASA) by 200 bps at 38.41 per cent, among others,’’ V Arvind, Chairman, Telangana Grameena Bank, told BusinessLine.

In the last financial year, the bank also had an extraordinary item of providing for pension to the employees.

“In all core parameters, our bank ranks first among all five RRBs in Telangana and Andhra,” he added.

The total business of the Hyderabad-based bank increased 18.4 per cent at ₹17,479 crore as against ₹14,763 crore in the year-ago period.

Net non-performing assets (NPAs) come down to 0.22 per cent from 0.86 per cent in the year-ago period while gross NPAs decreased to 2.16 per cent (2.35 per cent).

The deposits increased 16.61 per cent and stood at ₹8,992 crore while advances grew 20.37 per cent at ₹8m487 crore.

Established under the Regional Rural Bank Act 1976 as a government scheduled bank, Telangana Grameena Bank is now operating in five erstwhile districts namely Adilabad, Karimnagar, Nizamabad, Rangareddy and Hyderabad, ie 18 reorganised districts of the State with a network of 421 branches.

The shareholders of the bank are thr Government of India, State Bank of India and the Government of Telangana in the ratio of 50:35:15 per cent respectively.