Money & Banking

KVGB registers 25.5%growth in business

Anil Urs Dharwad | Updated on January 06, 2011 Published on January 06, 2011

Low-cost deposits increase 31 per cent

The Dharwad-based Karnataka Vikas Grameena Bank (KVGB), a regional rural bank sponsored by Syndicate Bank, saw a 25.5 per cent growth in business at Rs 8,505 crore at the end of the third quarter of 2010-11 as against Rs 6,781 crore recorded last year.

According to bank officials, this has been achieved mainly through extensive penetration in rural areas in 13 districts of Karnataka.

“We have been able to penetrate into rural areas by conducting regular padayatras and door-to-door canvassing for deposits and advances,” Mr K.P. Muralidharan, Chairman, KVGB, told Business Line.

“Door-to-door service initiatives through our banking correspondents (BCs) helped us mobilise more low-cost deposits.

And we were also able lend more to priority sector,” he said.

Significantly, low-cost deposits were up 31 per cent at Rs 2,211.01 crore (Rs 1,686.16 crore), he pointed out.

The bank's total deposits also went up 22.76 per cent as on December 31, 2010, to touch Rs 4,922.72 crore (Rs 4,010.12 crore).

District-wise, the bank's low-cost deposit mobilisation is as follows: Dharwad Rs 403.11 crore, Haveri Rs 259.88 crore, Gadag Rs 211.20 crore, Belgaum 335.85 crore, Chikkodi Rs 240.26 crore, Bijapur 254.31 crore, Bagalkot Rs 254.44 crore, and Kumta Rs 141.42 crore.

The bank's gross advances were up 22.5 per cent to Rs 3,584 crore (Rs 2,928 crore), while disbursement was up 47.4 per cent to Rs 1,557.04 crore (Rs 1,056.33 crore).

The bank's priority sector lending was Rs 2,889 crore and agriculture lending stood at Rs 2,259 crore.

As on December 31, the bank's NPA was Rs 83.13 crore.

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Published on January 06, 2011
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