The century-old Aryapuram Cooperative Urban Bank, based in Andhra Pradesh, is making concerted efforts to grow after enduring a five-year period of stagnation under a government-appointed administrator.
The newly elected team, led by visionary Challa Shankara Rao, is focused on driving further growth. Rao, who previously served as Chairman from December 2013 to June 2019, played a crucial role in expanding the bank’s business during his tenure.
Speaking to Indian Cooperative at the bank’s headquarters in Rajahmundry, Rao shared, “During my tenure, the bank’s business grew from Rs 619.24 crore in 2013-14 to Rs 1,028.51 crore in 2018-19, an increase of Rs 409.27 crore. However, under the government-appointed administrator, the total business increased by only Rs 54.43 crore over the next five years,” he said.
He further added, “During the administrator’s tenure, the bank came under the Supervisory Action Framework (SAF), which posed significant challenges and slowed our progress. Now, our performance is up to the mark, and we have submitted a request to the Reserve Bank of India for lifting the SAF restrictions,” he noted.
Rao has developed a comprehensive five-year plan to propel the bank forward. “Currently, our business mix stands at around Rs 1,100 crore, but we aim to reach Rs 2,000 crore by the end of my tenure. We also expect advances to rise from the current Rs 425 crore to Rs 500 crore by the end of this financial year,” he stated.
The bank’s management has introduced several initiatives to modernize its services. “We plan to launch mobile banking and IMPS services for our customers, along with offering ATM facilities at all branches. At present, the bank operates 16 branches, but we aim to expand to 32 branches across Andhra Pradesh,” Rao added.
It is also noteworthy that the bank, which had been grappling with rising NPA (Non-Performing Assets) levels, has made significant progress in reducing them.
As of 23rd July 2024, the gross NPA stood at Rs 90.44 crore, representing 22.45 percent. However, with the efforts of the new board, it decreased to Rs 50.90 crore, representing 11.91 percent, by 30th September 2024—a reduction of Rs 39.54 crore in just over two months.
“The bank will continue to make efforts to maintain consistency in NPA levels. Our target is to bring the gross NPA below 7%, which stood at 12.01% as of 31st March 2024,” Rao affirmed.
Rao is widely regarded for his commitment to social causes. His followers recall that during his previous tenure from 2014 to 2019, he contributed his entire honorarium—amounting to around Rs 36 lakh—for the development of poor communities. His dedication to the welfare of the underprivileged continues to distinguish him as a leader with a difference, they said.
