HIGHLIGHTS OF THE POLICY GUIDELINES 2003-2004

[sunandaC]

BUSINESS GOALS-GROWTH
 Deposits 18% (composition of low cost deposit to increase by 1.5%)
 Non-food advances 16%
 International Banking Business (Sales and Purchases) 25%
 Non-Interest Income 20%
 Net Profit 25%
 Reduction in cost of transaction to Rs 1.20 per Rs100 from the present cost of Rs1.60 per Rs100/-
 Shortfall in NPA reduction budget will amount to non achievement of advances budget
 If budget is not achieved due to reduction in NPA it will be deemed to have been achieved
 Overheads should not exceed the previous years figures. Increase in overheads with compensating increase in business and income will be acceptable.

NPA REDUCTION:
 Net Reduction to be more than 10%
 Up gradation Rs200 Cr
 Cash Recovery Rs235 Cr
 Write Offs Rs575 Cr

LOSS MAKING BRANCHES:
 Zero loss making branches by March 2004


TECHNOLOGY:
 50 branches to be put on Bankmaster and 150 branches to be put on universal banking system
 211 branches at 6 centres to be connected in phase & 125 branches at 24 centres to be connected in 211 branches to have internet banking by December 04-05
 40 branches to have telebanking
 Elrecon All FCB by March and All Non-computerised branches by 2004-05

SINGLE WINDOW:
 All FCB to be covered under single window
 All new branches to be opened with single window concept

INSPECTION AND AUDIT:
 Consistent efforts should be made to improve branch rating in the new environment of Risk Based Inspection.