Money & Banking

Karnataka Bank chalks out strategy to double business by 2020

AJ Vinayak Mangaluru | Updated on January 12, 2018

Mahabaleshwara MS, MD & CEO, Karnataka Bank

To apply 20:30:40 incremental growth formula over the next 3 years, says MD

Karnataka Bank , which achieved business of ₹93,737 crore in 2016-17, is looking to double that to ₹1.80 lakh crore in three years.

Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, told BusinessLine that he has worked out a growth schedule for the next three years with a 20:30:40 formula.

This envisages achieving an incremental business of ₹20,000 crore, ₹30,000 crore and ₹40,000 crore in 2017-18, 2018-19 and 2019-20, respectively.

“This will help us to reach a business turnover of ₹1.80 lakh crore by 2020,” he said. For this, the bank has already identified potential growth areas and sectors.

Agreeing that it is a challenging target to achieve, he said: “If your efforts are really good, success follows.”

Highlighting the role of growth facilitators to achieve the target, Mahabaleshwara said the Goods and Services Tax (GST) will be a major facilitator as also recent developments such as the non-performing asset (NPA) resolution ordinance, bankruptcy code, and prompt corrective action (PCA) by Reserve Bank of India. Added to this, inflation is set to come down.

“All these indicate that we are definitely moving towards a healthy economic condition. In a couple of quarters there will be positive growth sentiments,” he said.

On the bank’s initiatives for growth, he said Karnataka Bank has already located its branches in strategically important centres. It has opened 350 such branches across the country in the last one decade. These are giving good business.

Add to this, the bank has also recruited, trained and placed around 100 marketing officers in strategically important centres. That will definitely add to the business, he said.

Published on June 14, 2017

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