The Hindu Business Line : Shamrao Vithal Co-op Bank to expand base in Karnataka

With two bank acquisitions in Maharashtra's cooperative bank sector under its belt and the third one in Bangalore just awaiting the RBI's approval, the Shamrao Vithal Co-operative Bank is all set to expand its base in Karnataka.

After a three-month stocktaking and consolidation period, it would once again embark on an expansion drive in places such as Ahmedabad and Nagpur, says its Chairman, Mr Suresh Hemmadi.

The 61-branches strong bank, currently having good presence in Maharashtra, Goa and Karnataka, is eyeing an annual growth of 50 per cent this year, Mr Hemmadi told presspersons last week. The Director, Mr Dinesh Kumtha, was also present.

After having decided "inorganic growth" as the route for expansion, the bank has taken over Mahavir Urban Co-operative Bank with 11 branches and Saptashringi with two branches in Maharashtra during the current year to add Rs 45 crore to its business.

"What is crucial is we get the new outlets with these takeovers," said Mr Hemmadi. He, however, made it clear that the bank undertaken "due diligence" and followed stringent financial assessment process before finalising the takeovers.

Third merger

With the third merger that of Souvardhra Bank in Bangalore with 11 branches awaiting the approval of RBI, Shamrao Vithal is looking to add another Rs 80 crore business to its kitty.

The bank is targeting 40-45 per cent annual growth consistently. With a present annual business of Rs 4,000 crore, it is expecting to achieve Rs 6,000 crore by the end of 2007. To mark its centenary on December 27 next, the bank is striving to reach a business target of Rs 5,500 crore, said Mr Kumtha.

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