"Perhaps these model villages will be called `Andhra Bank Villages'. Once the discussions are through, we will announce this scheme formally", he added.

Andhra Bank is actively involved in the development of the rural sector of the country. The bank has a reasonable hold in the rural areas, 38 per cent of its branches, out of its total network of 1,018 branches, are located in rural areas, with 28 per cent located in the semi-urban areas.

"Rural banking is our life-bread. We have given greater emphasis to the rural economy. We also have plans to commence self-employment initiatives in the `lead districts' of Andhra Pradesh", he said. There is already one such inititative in Rajamundri, which saw about 20,000 people gettraining in the last three or four years. Andhra Bank has introduced `kisan credit cards', which are available to the farming community in Hyderabad. The bank has also introduced `Kisanchakra', under which farmers will get a loan amount upto Rs 30,000. The bank will provide the loan without any collateral.

The bank has sponsored three regional rural banks (RRBs), in pursuance of the government policy of providing banking services in the rural areas. It has sponsored Rushikulya Gramya Bank in Orissa, and two more RRBs in Andhra Pradesh: Chaitanya Grameena Bank, and Godavari Grameena Bank.

Andhra Bank has introduced `cluster banking' - the first of its kind in the country. The bank is providing its services as a mobile centre to a cluster of three-four villages at a time. "The idea behind these initiatives is to facilitate faster transformation in the rural economy, that help the overall development.

We are optimistic that other banks and non-banking financial institutions will join hands in these projects. That will indeed lead to overall development of the rural economy", he said.