Money & Banking

Karnataka Vikas Grameena Bank net profit rises 50%

| | Updated on: Apr 28, 2011

Growth in net interest income and reduction in non-performing assets (NPAs) helped the Dharwad-headquartered Karnataka Vikas Grameena Bank (a regional rural bank sponsored by Syndicate Bank) to register a growth of 50.51 per cent in net profit during 2010-11.

Speaking to Business Line over phone from Dharwad on Thursday, Mr K.P. Muralidharan, Chairman of Karnataka Vikas Grameena Bank (KVGB), said that the net profit of the bank stood at Rs 95.17 crore during 2010-11 as against Rs 63.23 crore in 2009-10, recording a growth of 50.51 per cent.

He attributed this growth to reasons such as the increase in net interest income and to the reduction in NPA levels during the year. Mr Muralidharan said that the net interest income stood at Rs 235 crore (Rs 177 crore) during the year.

Total income stood at Rs 577 crore (Rs 449 crore) during the period.

He said that NPA levels during 2010-11 did not go beyond the previous fiscal, and in fact it was brought down.

The gross NPA of the bank stood at 2.54 per cent (3.06 per cent) to the total advances during the period.

The total business of the bank reached Rs 9,047 crore during 2010-11 as against Rs 7,538 crore in the previous fiscal, recording a growth of 20.02 per cent.

The bank wants to reach a business level of Rs 11,000 crore by the end of the current fiscal, he said.

During 2010-11, the total deposits of the bank reached Rs 5,406 crore (Rs 4,456 crore) and total advances Rs 3,641crore (Rs 3,082 crore), recording a growth of 21.32 per cent and 18.14 per cent, respectively.

Core banking facility

A bank release said here that KVGB has implemented core banking facility (CBS) in all its 451 branches.

During 2011-12, the bank proposes to provide its customers with other delivery channels such as ATM and net banking, and facilities such as RTGS/NEFT in a phased manner, it said.

The bank opened 26 new branches during 2010-11 taking the total number of branches to 451.

KVGB, which has a presence in nine districts of Karnataka, proposes to add 35 more branches during the current fiscal.

Financial inclusion

The release said that the bank has been allotted 383 villages for extending banking services under the financial inclusion plan.

The bank has already opened 27 financial inclusion branches and appointed 40 business correspondents for the implementation of the plan. It said that the bank proposes to open 25 financial inclusion branches and 291 business correspondents during this fiscal.

Published on April 28, 2011

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