Karnataka Vikas Grameen Bank (KVGB), a regional rural bank headquartered in Dharwad, Karnataka, is targeting a business turnover of ₹28,000 crore for 2019-20.

S Ravindran, Chairman of KVGB, said on Tuesday that the bank is targeting a deposit of ₹15,000 crore and advances of ₹13,000 crore to achieve this turnover.

He said the bank was able to achieve an absolute business growth of ₹1,825 crore during 2018-19. The bank’s business increased from ₹23,432 crore in 2017-18 to ₹25,257 crore in 2018-19, registering a growth of 7.79 per cent during the year.

This growth was despite the slowdown in economic activity due to continuous drought in areas where it operates. In Karnataka, the bank operates in nine districts – Dharwad, Gadag, Haveri, Vijayapura, Belagavi, Bagalkot, Uttara Kannada, Udupi, and Dakshina Kannada. Of the 57 taluks under its jurisdiction, 51 have been declared drought-affected by the Karnataka government, he said. The bank was able to show an operating profit of ₹203.26 crore and net profit of ₹50.12 crore for 2018-19, he said.

Total deposits

The total deposit of the bank stood at ₹13,895 crore (₹12,944 crore) during the year. Of this, the share of CASA (current account, savings account) stood at ₹5,300 crore (₹4,673 crore). Total advances of the bank stood at ₹11,362 crore (₹10,488 crore) during the year, while the credit-deposit ratio increased from 81.02 per cent in 2017-18 to 81.77 per cent in 2018-19.

The capital adequacy ratio of the bank stood at 15.44 per cent, which is well above the limit of 9 per cent for RRBs, he said. The bank has 636 branches and 84 ATMs in the nine districts of northern and coastal Karnataka.

All digital services, including Aadhaar-enabled Payment System (AePS), mobile banking, and net banking have been implemented on a par with other commercial banks, he added.

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