Bhubaneswar: The MD and CEO Dinabandhu Mohapatra of State-owned Bank of India (BoI) Wednesday claimed that the bank aims to increase its profit in the first quarter of financial year of 2019-20.
Mohapatra was in the city to donate Rs 6.61 crore to the Chief Minister’s Relief Fund (CMRF) to support Fani relief, rehabilitation and reconstruction.
“March quarter of FY 2018-19, we posted a profit of Rs 252 crore, which was the highest among nationalised banks. If our plan goes smoothly, we hope to achieve profit in Q1 FY 2019-20 more than March quarter,” Mohapatra told reporters.
BoI launched its new scheme ‘Nandighosha’, especially for NPA account-holders in Odisha. “With the help of this scheme, the business owners who are not able to repay their loans for any reason can apply for fresh loans,” he said. Mohapatra said BoI had bad loans to the tune of Rs 398 crore in Odisha.
BoI expects that bank may go for credit growth of 20-25 per cent in the state. The bank may disburse credit to retail, agriculture and SME sectors. “Good rating credit accounts will be first preference to give credit. Last year, we disbursed Rs 1,600 crore credit in Odisha,” the MD and CEO said.
The bank has 256 branches spread across the state and it holds business of Rs 12,000 crore in Odisha.
The bank has just exited the PCA framework. Mohapatra said the bank may not need to raise funds to bring balance in the banking system. “Our present capital positing is very strong. The bank can make over 20 per cent growth rate with the present capital. But if needed, bank board has approved to raise funds from market,” he said. He said that government had infused a stimulus of Rs12,000 crore last year.
The bank is currently working to improve digital banking. In a bid to create safe and secure digital transaction, BoI has launched two awareness initiatives — Pathashala and Prayogshala — in rural areas of Odisha.
“Through Pathashala, we teach villagers on how to secure their password and other banking accessibility. Under Prayogshala initiative, we help people learn how to swipe their cards in PoS machines and in ATM booths,” he said.
