By recording a growth of 26.18% compared to the previous financial year, Karnataka Vikas Grameen (KVG) Bank, a leading regional rural bank, has posted a net profit of ₹40.25 crore during the fiscal year 2022-23.
Addressing presspersons in Dharwad on Saturday, chairman of KVG Bank Shreekanth Bhandiwad said that the bank had reached the business level of ₹33,150.8 crore during 2022-23 while it was ₹30,747.85 crore during the last fiscal. The year-on-year growth is 7.82%.
KVG Bank operates in nine districts of North Karnataka and coastal Karnataka and has a network of 629 branches monitored by ten regional offices.
Net NPA down to 4.64%
Mr. Bhandiwad said that the bank’s gross NPA had come down from 9.37% in 2021-22 to 6.96% in cent in 2022-2023, thus bringing down the net NPA level from 5.90% in 2021-22 to 4.64% in 2022-23 with an outstanding cash recovery of ₹1,240.81 crore during the year. Although recovery was badly affected during the post COVID period, the bank managed to bring down the net NPA level by adapting various measures including flexible One Time Settlement (OTS), he said.
At present, the bank’s deposits stand at ₹18,710.23 crore and the total advances amount to ₹14,440.37 crore.
He said that the priority sector credit stood at ₹13,014.07 crore and it amounted to 90.12% of the total advances extended by the bank. Among the priority sector advances, the highest is to the agriculture sector which received ₹10,276.47 crore forming 71.16% of the bank’s total credit. He said MSME received ₹796.3 crore, Housing ₹98.89 crore and Investment sector ₹707.85 crore. This apart, 3,54,314 Kisan credit cards were issued by the bank with an disbursement of ₹7,111.02 crore, he said.
Target
Mr. Bhandiwad said that the bank had set a target of achieving business level of ₹35,700 crore during the current fiscal (2023-24). He said the target was to achieve deposit level of ₹20,400 crore, advances level of ₹15,300 crore and thereby achieve a net profit of ₹150 crore. There would be more focus on agriculture, MSME, retail including housing and investment credit, he said.
To a query, he said that the bank had taken measures to extend the benefits of social welfare schemes and Union government-sponsored schemes to the public.
He said that bank had bagged nine national awards from the Pension Fund Regulatory and Development Authority (PFRDA) for implementing social security schemes like Atal Pension Yojana, PMJJBY and PMSBY.
Bank’s general managers V. Thennarasu, Satheesha R., Sathyaprasad N., R.T. Kamble, M. Punith and chief manager (Marketing & PR) Ullas Gunaga were present.
