The Hindu Business Line : Karnataka Bank aims 32% growth in advances

Mr Ananthakrishna, Chairman, Karnataka Bank, said the bank hoped to increase its advances to Rs 10,000 crore this fiscal, from Rs 7,800 crore in the previous year.

"Our focus will be on lending to the SME segment," he said.

Karnataka Bank's total business last fiscal was Rs 20,700 crore, of which Rs 13,000 crore were deposits and the advances were Rs 7,700 crore.

Mr Ananthakrishna said that the bank would soon take a decision on hiking its PLR (prime lending rate) from the current 12 per cent.

Karnataka Bank will soon be part of a non-life insurance joint venture where it will hold a stake of around 15 per cent. The other partners include Allahabad Bank (36 per cent), Indian Overseas Bank (19 per cent), Dabur (10 per cent) and Sompo Japan insurance company (26 per cent). The joint venture has approached IRDA for a license and will be operational in this fiscal. Karnataka Bank will infuse capital of around Rs 10-15 crore in the venture.

"The insurance joint venture will target the bank's borrowers. The focus will be on retail and we will offer products like householder's insurance,'' said Mr Ananthakrishnan. On the question of inorganic growth, he said that the bank was open to acquiring other banks but would not be acquired.

The bank has sought the RBI approval to set up 20 more branches.