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Karnataka Vikas Grameena Bank (KVGB) registered a net profit of ₹40.25 crore in 2022-23, against a net profit of ₹31.9 crore in 2021-22, recording a growth of 26.18 per cent.
Shreekant M Bhandiwad, Chairman of KVGB, said the bank has strengthened its balance sheet by making suitable provisions and by giving importance for recovery.
Stating that the bank has initiated various innovative recovery strategies to curtail fresh addition of NPAs (non-performing assets) and reduce the existing NPAs during 2022-23, he said the bank’s gross NPAs came down from 9.37 per cent in 2021-22 to 6.96 per cent in 2022-23. Net NPAs came down from 5.90 per cent in 2021-22 to 4.64 per cent in 2022-23, with an outstanding cash recovery of ₹1,240.81 crore during 2022-23.
Considering the present situation and to assist borrowers, especially farmers, the bank has introduced a flexible one-time settlement scheme. He said the bank’s recovery efforts were hindered by heavy rains in the service area, which affected farming activities and other economic sectors. He added that in most cases, farmers were unable to timely realize the proceeds from their agricultural produce.
In 2022-23, the bank earned gross income of ₹1,910.43 crore and an operating profit of ₹279.15 crore. After making a provision of ₹238.9 crore, the bank’s net profit stood at ₹40.25 crore.
Despite the slowdown in economic activities caused by adverse environmental conditions, the bank achieved a growth of ₹2,402.95 crore in 2022-23 compared to the previous fiscal, reaching a business level of ₹33,150.80 crore. This comprised deposits of ₹18,710.43 crore and advances ₹14,440.37 crore.
On the outlook for 2023-24, Bhandiwad said the bank is targeting at a business level of ₹35,700 crore and a net profit of ₹150 crore. More thrust will be given to sectors such as agriculture, MSME, retail and investment credit, he said.
The bank, operating in nine districts of northern and coastal Karnataka, has 629 branches and 10 regional offices. It also has 49 ATMs along with one mobile ATM.
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