Karnataka Vikas Grameena Bank (KVG Bank), a Dharwad-based regional rural bank, has set 20.33 per cent higher business target of Rs 13,000 crore for this financial year.

The bank achieved Rs 10,803-crore business in 2011-12 .

More ultra small branches

“The bank is planning to achieve this higher business through opening more ultra small branches in non-bank branch towns and cities,” the chairman of the bank, Mr C. Sambasiva Reddy, told Business Line .

“This fiscal we are also planning to disburse Rs 3,600 crore in our operational area of nine districts in north Karnataka,” he added.

The bank, through effective non-performing assets (NPA) management, has reduced its NPA level by Rs 3.41 crore from Rs 92.58 crore to Rs 89.17 crore.

Mr Reddy said the percentage of gross NPAs to total outstanding advances as on March 31, 2012 has come down to 1.97 per cent from 2.54 per cent last year.

“The bank has fully provided for the entire NPAs and hence the net NPA level is nil. Hence all our 117 branches are ‘nil' NPA branches,” he added.

Talking about priority sector credit, Mr Reddy said the sector credit grew by 25 per cent to Rs 752 crore compared with last fiscal.

Of the total business of the bank, the share of agricultural credit is Rs 2,916 crore. Credit to Micro, Small and Medium Enterprises (MSME) grew by 20.64 per cent. Weaker section advances was down 24 per cent (Rs 1,527.37 crore to Rs 1,895.51 crore).

Farm credit

The bank took full responsibility for implementing rapid action plan to provide credit to farmers in all the nine districts. Mr Reddy said through his plan, number of fresh Kisan credit cards issued by the bank stood at 30,942 and amount disbursed is Rs 256.48 crore.

The number of cards renewed is 61,598 and amount disbursed is Rs 442.58 crore.

Mr Reddy said, “The bank is targeting to achieve network of 550 branches and 50 additional ultra small branches and install 75 new ATMs by this fiscal.”

>anil.u@thehindu.co.in

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