Karnataka Vikas Grameen (KVG) Bank, one of the leading regional rural banks headquartered in Dharwad, has recorded a whopping 391% growth in net profit over the last year by registering a net profit of ₹31.90 crore. Last year, the bank registered a net profit of ₹6.5 crore.
Addressing presspersons in Dharwad on Wednesday, Chairman of KVG Bank P. Gopi Krishna said that despite the economic slowdown due to COVID-19-induced lockdown, the bank managed to achieve good results in recovery by convincing customers of the need to repay.
Consequently, the net NPA of the bank fell to 5.9% from 9.7% and the gross NPA also fell to 9.37% from 13.91%, he said.
Mr. Gopi Krishna said that in terms of business, the bank has shown an increase of ₹2,930 crore in business to reach ₹30,748 crore when compared to ₹27,818 crore recorded last year. The year-on-year growth is 10.53%.
The bank’s operating profit for 2022 has increased by 164.40%. It was ₹124.9 crore in 2021 and now, it is ₹330.19 crore against ₹124.9 crore in 2022, he said.
Mr. Gopi Krishna said that due to innovative recovery strategies to curtail fresh addition of NPA and through one time settlement (OTS) during the year, ₹1,460 crore has been realised. He said that the bank has set a target of achieving a business level of ₹33,000 crore by the end of March 2023.
16 national awards
The chairman said that the bank has received 16 national awards from PFRDA for its achievement in the implementation of social security schemes such as Atal Pension Yojana, PMJJBY and PMSBY. The bank has also been adjudged as the best regional rural bank under the “RRB category” for its significant initiatives in Digital Financial Services.
To a query, the bank chairman said that all pending issues pertaining to demands of employees have been sorted out and in fact, the bank has come out with a term insurance deposit scheme for employees in which 75% of contribution is being paid by the bank itself.
Orientation
To another query on non-Kannada speaking officials, he said that the bank is organising special orientation programmes and training for non-Kannada speakers to acquaint themselves with Kannada so that it will be easy for them to communicate with rural customers. On whether the bank has plans to reduce the number of ATMs, he answered in the negative.
Bank’s General Managers B.C. Ravichandra, Chandrashekar Moro, Srinivas Rao, Satheesha R., Malachi Punith and Chief Manager (Marketing & PR) Ullas Gunaga and others were present.
