Mangaluru-headquartered Karnataka Bank is hoping for a moderate rate of growth in its total business turnover in FY 2021-2022, stated its MD and CEO Mahabaleshwara MS. The lender is aiming for a financial year which will have a healthy business growth, cost-lite liability portfolio, strengthened fundamentals etc.
In a letter to the exchange, Mahabaleshwara MS wrote, “For the new financial year, the Bank is planning to grow its business at a moderate 12 per cent to take the total business turnover (i.e. a total of deposits and advances) to around Rs.1,42,500 crores. With healthy business growth, ‘cost-lite’ liability portfolio, strengthened fundamentals etc. the year 2021-22 should be a 'Year of Excellence' for Karnataka Bank.”
To maintain the position it holds, it is focusing on: healthy, consistent, sustainable and remunerative business; to continue their good efforts in the recovery process; to have a cost-lite liability portfolio by focusing on CASA and cost effective RTD (Retail Term Deposit); customer centric initiatives including TPP, to broadbase the fee income line; redesigning the business model by duly factoring in the service of KBL Services Ltd; creating a future ready workforce; further strengthening the control functions by spreading the culture of compliance and Risk Management; further strengthening the fundamentals like PCR, CRAR, NIM, ROA, ROE, Cost to Income Ratio etc; taking digital initiatives to next level to create a ‘Digital Bank of Future’. among others.
During the year 2020-21, a total of 16 new branches were opened across India, six branches were merged. As of March 31, 2021, the total number of branches stand at 858. “Further, for better business and ambience, 16 branches were shifted to new premises. 25 e-lobbies/ mini elobbies were opened and as on 31.03.2021 the effective number of e-lobbies/mini e-lobbies stood at 477. " The total number of Bank's currency chest stood at 4 as on March 31, 2021 as the Bank had opened a new currency chest at Mysuru in 2020.
Mahabaleshwara MS added that with many more digital products lined up for this new financial year, Karnataka Bank has a business advantage heading into the new FY 2021-2022 in a post COVID-19 scenario.
In addition, the lender as part of the advances portfolio realignment strategy has been mulling over having its credit exposure of minimum of 50 per cent to retail, 35 per cent to mid corporates and not more than 15 per cent to large corporates (ratio of 50:35:15). With this move, the Bank is looking at minimising the concentration on large corporate borrowers and to ensure continued sustainability.
On March 30, 2021, the wholly-owned non-financial subsidiary of the Bank - KBL Services Ltd' has commenced its operations at Bengaluru. This is the first-ever subsidiary of the Bank in its history of 97 years. "The Bank expects a greater role by the subsidiary in supplementing Bank's efforts to emerge as a Smart Bank. KBL Services Ltd. is also expected to play a major role in enhancing operational efficiency of the Bank going forward."