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A.J. Vinayak

Dharwad, Oct. 5 The Dharwad-headquartered Karnataka Vikas Grameena Bank – a regional rural bank (RRB) sponsored by Syndicate Bank – is eyeing a business of Rs 10,000 crore by 2010.

This is not a small task for a bank, which had a business of around Rs 3,000 crore at the time of its formation in September 2005. The bank was formed after amalgamating Malaprabha, Bijapur, Varada and Netravati grameena banks in 2005.

Mr M. Dhananjaya, Chairman of KVGB, told Business Line that the total business as on the date of amalgamation was around Rs 3,000 crore and net profit was Rs 36.91 crore.

The bank reached a business level of Rs 5,305 crore as on March 31, achieving a growth of more than 75 per cent since amalgamation.

The business target for current fiscal is fixed at Rs 6,450 crore and the profit target at Rs 95 crore. “We plan to increase the business level to Rs 10,000 crore by 2010,” he said.

To a query on the challenges faced by the bank at the time of amalgamation and how did it manage them, he said that when amalgamation took place, the erstwhile four RRBs were well established in their area of operation with their own unique identity and a definite working pattern.

“Foremost on the agenda was to bring about uniformity in the rates of interest on deposits and advances, common deposits/advances, products with brand names and preparing a common seniority list of all the staff. This was achieved by constituting a committee comprising representatives from the erstwhile four RRBs,” Mr Dhananjaya said.

“Based on their recommendations, we had issued guidelines to be followed uniformly by all the branches. Manual of instructions was prepared and supplied to the branches. Signboards with the new name and logo were immediately provided to all branches.”

Intermingling of the staff was effortless, with a total sense of belonging and pride in the new entity, he said.

At the time of amalgamation, the bank had planned to diversify its business activity by entering insurance business.

More Stories on : Regional Rural Banks | Karnataka

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