Money & Banking

KVG Bank targets ₹31,000 crore business for 2021-22

Our Bureau Mangaluru | Updated on June 28, 2021

P Gopikrishna, Chairman, KVG Bank   -  The Hindu

Targeting a deposit of ₹17,500 crore and advances of ₹13,500 crore during the year

Karnataka Vikas Grameen Bank (KVGB), a regional rural bank headquartered in Dharwad, is targeting a business of ₹31,000 crore for 2021-22.

Addressing a virtual media conference on Monday, P Gopikrishna, Chairman of the bank, said the bank reached a business level of ₹27,818 crore during 2020-21 as against ₹26,268.81 crore in the previous fiscal, recording a growth of 5.9 per cent.

Stating that this growth is well comparable with growth percentage of other banks, he said more thrust will be given to agriculture, MSME (micro, small and medium enterprises), retail lending during the year.

The bank is targeting a deposit of ₹17,500 crore and advances of ₹13,500 crore during the year.

He said KVGB, which has registered an operating profit of ₹124.89 crore in this adverse situation, has emerged stronger with its focus on rural development, agriculture, MSME and digitalisation initiatives.

The bank registered an operating profit of ₹124.89 crore in 2020-21 as against an operating loss of ₹179.90 crore during 2019-20.

Gross income of the bank increased to ₹1,589.53 crore (₹1,492.84 crore), and the total expenditure came down to ₹1,583.03 crore (₹2,097.80 crore).

After making a provision of ₹118.39 crore towards tax and other provisions, the bank recorded a net profit of ₹6.50 crore for 2020-21.

He said increase in the NPA (non-performing assets) and creation of pension fund as per the Supreme Court orders attracted higher provisioning.

He said that the outbreak of Covid pandemic and continuous drought for the last five-six years adversely affected the recovery efforts of the bank.

In spite of unfavourable climatic conditions, the bank curtailed its net NPA to 9.22 per cent with an outstanding cash recovery of ₹1,007.37 crore during the year, Gopikrishna said.

KVGB has jurisdiction over Dharwad, Haveri, Gadag, Vijayapura, Bagalkot, Belagavi, Uttara Kannada, Udupi and Dakshina Kannada districts of Karnataka.

Published on June 28, 2021

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