Nilamani Sen Deka at the inauguration in Guwahati on Tuesday. Picture by UB Photos

Guwahati, Dec. 31: Assam Gramin Vikash Bank (AGVB), the largest regional rural bank in the Northeast, today bolstered its reach and set up 11 branches across eight districts of the state.

The bank now has the largest network in Assam with 388 branches.

Agriculture minister Nilamoni Sen Deka lauded the initiative, saying the bank had taken its services closer to the homes of the rural people.

“The expansive network bears testimony to the bank’s progress over the years and one that caters to people in the rural areas and contributes to the state’s economic development,” Deka said, during the inauguration of the branches at a function here.

The branches were opened at Uparhali (Kamrup), Chandrapur (Kamrup-metro), Raha, Rupahi and Kathiatoli (Nagaon), Segunbari and Sadiya (Tinsukia), Rajgarh (Dibrugarh), Namkhola (Darrang), Sirajuli (Sonitpur) and Bangalmara (Lakhimpur).

Terming it a “poor man’s bank”, the minister said the bank had played a significant role in extending various types of credit, including loans, to self-help groups and kisan credit cards to farmers.

“It is also important for people to repay loans and consider the bank an investment centre. The bank, for its part, can also guide people regarding repayment,” he said.

Assam Gramin Vikash Bank was formed by the amalgamation of four regional rural banks — Pragjyotish Gaonlia Bank, Lakhimi Gaonlia Bank, Subansiri Gaonlia Bank and Cachar Gramin Bank — on January 12, 2006.

The banks are sponsored by the United Bank of India.

Over eight years, the bank has expanded its business volume from Rs 2,565 crore in January 2006 to Rs 9,520 crore at present.

The bank currently caters to 1,61, 208 credit-linked SHGs and 4,72,119 farmers (KCC loans).

Ten beneficiaries, including five SHGs and five farmers, were provided loans at the function today.

The rural bank will also have 13 more branches by the end of this fiscal.

“With 13 more, we will achieve our target of 27 branches during the fiscal year by March. Currently, our share is 22 per cent of the bank branches in Assam. Our credit-deposit (CD) ratio of 57 per cent is higher than that of the region, which has a CD ratio of 42 per cent,” Shio Shankar Singh, the chairman of the bank, said.

All the 11 branches are equipped with core banking and ATM services. As many as 10,000 accounts were opened on the first day.

“The bank caters to rural households through its 178 ultra small branches and 1,231 business correspondents. Besides, our customers can avail of RuPay debit cards and transact by using their mobile phones,” Singh said.

The bank, through each branch, holds a financial literacy camp in a village every week.

Under its credit augmentation programme, the bank has disbursed Rs 560 crore as loans in the current financial year (till date) and by February 2014, plans to disburse another Rs 500 crore as loans.