The Hindu Business Line : KVB to focus on retail financing

KARUR Vysya Bank, which has automated its banking by adopting core banking solution and has expanded its ATM network, hopes to increase its deposit base to Rs 8,000 crore during the current fiscal from the previous year's Rs 6,600 crore.

The old generation private sector bank has put its bet on technology adoption as a key factor to steady growth through its 89 years of existence. It plans to introduce Internet banking by the third week of this month to strengthen its business further, said Mr P.T. Kuppuswamy, Chairman.

Addressing a press conference here on Saturday, Mr Kuppuswamy said that with majority of its 231 branches being brought under the core banking technology application, KVB hopes to get a boost to its retail savings base. The bank's strategy is to mobilise low cost deposits and focus on retail financing to retain its robust net interest margin, he added.

The overall business is set to reach Rs 13,500 crore next year, and advances to increase to Rs 5,500 crore from Rs 4,741 crore in the previous year.

Sharing the growth history of the bank, Mr Kuppuswamy said KVB plans to strengthen its branch network in Karnataka by adding four more to its current 13. The new branches would come up in Shimoga, Bellary, Karatagi and Koramangala (Bangalore). Karnataka, which has a high growth potential, has contributed a total business of Rs 357.41 crore during 2004-05.

KVB with a capital adequacy ratio of 16.04 per cent is well placed to conform to the Basel II norm and has maintained a credit deposit ratio of 70 per cent to achieve good results, he said.

The bank, which entered its 90th year, would honour meritorious post-graduate students from leading universities as part of its founders' day celebrations.

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