Money & Banking

‘KBL Vikaas delivering results’

Our Bureau Mangaluru | Updated on August 07, 2019 Published on August 07, 2019

Mahabaleshwara MS

Karnataka Bank says its transformation initiative is ensuring tangible benefits

Karnataka Bank’s transformation initiative, which was started with the help of Boston Consulting Group in November 2017, has started delivering results, according to Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank.

Addressing shareholders at the 95th annual general meeting of the bank in Mangaluru on Wednesday, he said the technology-driven transformation initiative — ‘KBL Vikaas’ — has delivered several wins for the bank, and many more are in progress.

Under this initiative, the bank has enhanced the entire NPA recovery process through an automated digital tool that enables case-by-case tracking as well as timely action for recovery of the particular impaired asset.

He said the sanction turnaround for home loans was reduced from 30 days to seven days under this technology-driven initiative. “This has led to 26 per cent growth in our home loan portfolio during 2018-19 compared to 16 per cent growth in the previous year.”

He said the commission income from the third party products grew by 21 per cent in first quarter of 2019-20. The growth rate under this was 8-10 per cent till now.

Mahabaleshwara said ‘KBL Vikaas’ has laid the foundation of a strong sales and marketing culture in the bank.

The bank has deployed a sales team of 300-plus members across liability and asset products.

He informed the shareholders that the bank has received approval from the regulator to set up a wholly-owned subsidiary called ‘KBL Services Ltd’ as part of ‘KBL Vikaas’. The preparatory work is under way in this regard, he said.

A special resolution moved at the AGM said that the bank is mulling floating a wholly-owned non-financial subsidiary with a view to reduce cost of operations and also to provide support to the bank in achieving strategic objectives in the long run.

On Wednesday, the scrip of the bank closed at ₹78.80 on BSE, down 1.75 per cent, against the previous close of ₹80.20.

Published on August 07, 2019
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