Money & Banking

Karnataka Bank targets ₹1.10 lakh crore business this fiscal; cuts MCLR by 25-55 bps

Our Bureau Mangaluru | Updated on January 15, 2018 Published on April 03, 2017

P Jayarama Bhat, MD and CEO

“The outlook for 2017-18 is positive and we should be able to encash all the growth opportunities.”

Karnataka Bank is targeting a business turnover of ₹1.10 lakh crore for 2017-18. This includes deposits of ₹64,500 crore and advances of ₹45,500 crore.

Rolling out the business agenda for 2017-18 at the head office of the bank in Mangaluru, P Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said 2016-17 was a year of satisfactory growth considering the prevailing economic conditions in the global and domestic economies and the impact of demonetisation on the banking industry.

“The growth outlook for 2017-18 is positive and we should be able to encash all the growth opportunities to take the business turnover to a new high of ₹1.10 lakh crore,” he said.

The bank intends to open 35 new branches, including nine financial inclusion branches, to take the tally to 800 by March 2018. As on March 31, the bank had 765 branches across the country.

He said the bank proposes to take the tally of ATMs to 1,450, from the present1,380.

E-lobbies and mini e-lobbies are planned to be increased to 150, from the present 110, he added.

MCLR reduced

Karnataka Bank has cut its marginal cost of funds-based lending rate (MCLR) by 25- 55 basis points across various tenors with effect from April 1. The bank has reduced the MCLR for overnight tenor to 8.40 per cent from 8.90 per cent, and for one-month tenor to 8.45 per cent from 9 per cent.

The MCLR has been reduced to 8.55 per cent from 9.05 per cent for the three-month tenor, and to 8.70 per cent from 9.10 per cent for the six-month tenor. The MCLR for the one-year tenor has been reduced to 8.90 per cent from 9.15 per cent.

Housing, car loans

A press release from the bank said it has reduced the interest rate on housing and car loans sanctioned on or after April 1.

Published on April 03, 2017
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