Karur Vysya Bank to focus on SMEs

Karur Vysya Bank, which will turn 100 in July next, is looking to emerge as a strong SME bank. Chief Executive K Venkataraman told BusinessLine that efforts are on to position this nearly-century old bank for the next level of growth, as a specialised institution for the SMEs.

“We want to project the bank as a niche player in the SME banking space,” Venkatraman said.

And in tune with this vision of carving a niche for itself as a “Specialised SME Bank”, KVB has been developing products and packages designed for specific trades.

“We have worked out product packages for maximum number of business activities, including supply chain finance. The package so devised will help various trades operate without our intervention,” he said.

New products Kick-starting the centenary celebrations in Karur late July, the bank announced the roll-out of 18 products and services. “We have some more in the pipeline,” the KVB chief said, highlighting products, such as KVB Commodity Plus for dealers in pulses, cereals, spices and edible oil, KVB Food and Agro Plus for units engaged in food processing business, and KVB Construction Plus for dealers in construction materials, among others.

“Supply chain finance involves high investment and is crucial for SMEs and mid-corporates. We have therefore brought collections, payments and supply chain finance under one platform. Through this, we will be able to capture their (our customers’) vendors and suppliers,” he explained.

Packages apart, the bank continues to practice the age-old principle of extending “need-based finance”.

“Extension of timely support and only in adequate proportion – is what we have been trying to work out for some time now. The product was under development for almost two years; product and structures are now in place and it is to be boarded soon. The response has been phenomenal. We will shortly commence aggressive marketing of this product,” Venkataraman said.

Approach of SMEs Asked to explain the circumstances under which customers sought timely support, he said, “In tighter situations, we noticed people moving to us; and like everyone else, we too looked for a strong balance sheet. But with the system in place, our mechanism of release is controlled.”

“SMEs neither plan nor do they have a long-term outlook; in addition to this, they are also subjected to the whims and fancies of their vendors and suppliers; the need to support them is therefore, all the more and we have to act quickly. Our branch heads intervene and resolve their issues to a large extent.”

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