aroda Rajasthan Gramin Bank (BRGB) was established on 3 February 2006 by amalgamation of 5 erstwhile RRBs viz, larudhar Kshetriya Gramin Bank, Aravali Kshetriya Gramin Bank, Bundi Chittorgarh Kshetriya Gramin Bank, Bhilwara Ajmer Kshetriya Gramin Bank and Dungarpur Banswara Kshetriya Gramin Bank, all sponsored by Bank of Baroda. This RRB is catering to the financial needs of the rural masses through a network of 274 branches in 13 districts.
Mukesh Garg, Chairman, BRGB, said that the objectives of the amalgamation were to take advantage of economies of scale, improve operational viability by reducing transaction cost and sustain competition with big players in the market, besides evolving brand image. Amalgamation has provided the bank an opportunity to extend its area of operation to a large extent with accessibility to increased number of clientele with wide range of products in the form of 11 deposit schemes and 26 loan schemes to cater to the different needs of the people.
On the issue of volume of business and profits, Garg said that after the amalgamation, the level of BRGB's business has increased from Rs 1605.57 cr in March 2006 to Rs 3089.55 cr in March 2009, thereby registering an average growth of 24%. Besides the clientele base which was 1,008,532 as on March 2006 has increased to 1,812,003 as on March 2009 with a growth of 80% in 3 years is reflective of best ever customer service rendered. The bank has registered consistent profit of Rs 0.48 cr, Rs 6.17 cr, Rs 16.26 cr and Rs 30.25 cr in 2005-06, 2006-07, 2007-08 and 2008-09 respectively which is reflective of sound affairs of business.
Stating the measures to spread awareness, Garg said that the bank has launched its bilingual website on 23 June 2008 which provides up to date information about various deposit and loan schemes, new initiatives taken by the bank, etc, on continuous basis.
CHANGING PATTERNS
Highlighting the major changes observed in pattern of savings, fixed deposits, and loans, Garg said that the deposit growth of 21.30%,22.17% and 29.18% in 2006-07, 2007-08 and 2008-09 respectively reflects the increasing saving habits of the people. During last two years growth in fixed deposits has been 30.22% and 26.21 %. However the thrust for mobilizing low cost deposits has also yielded good results with savings deposits growth of 29.65%, 18.01% and 34.16% in 2006-07, 2007-08 and 200809 respectively. The pattern of loan taking shows an increasing trend in past 3 years with loan disbursement of Rs 533 cr, Rs 657 cr and Rs 734 cr during 2006-07, 2007-08 and 2008-09 respectively. The reason for increased loan taking during 2008-09, despite the low credit demand due to worldwide recession, is that the rural credit demand has not been affected by the economic recession and 75% of the bank's branches are working in rural area.
CURRENT PROJECTS
Outlining the current project and strategies of business growth and plans for year 2009-2010, Garg said that various initiatives have been taken after the amalgamation towards development and strengthening the bank, but still lot more has to be done for further expansion and the current projects being/to be implemented during current fiscal in consonance with the business policy guidelines of the bank for 2009-10 are as follows: (i) total
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