DHARWAD: The Karnataka Vikas Grameena Bank (KVGB), one of the leading regional rural banks in the country, has scaled new heights in terms of business and profits.
In a press conference, Shreekant M Bhandiwad, the chairman of KVGB, announced that the bank has surpassed the milestone of Rs 35,800 crore in business and achieved a net profit of Rs 104.16 crore.
He mentioned that the bank’s total business has grown by 8.24 per cent, with deposits rising by 6.12 per cent.
The bank has achieved a significant increase of ₹2,733 crore compared to the previous year, achieving a business level of ₹35,884 crore from ₹33,151 crore, reflecting a year-over-year (YoY) growth of 8.24 per cent. This growth rate is in line with that of other banks, he said.
The bank recorded a gross income of ₹2,121.48 crore and achieved an operating profit of ₹301.20 crore in the fiscal year 2023–24. After setting aside a provision of ₹197 crore, the bank reported a net profit of ₹104.16 crore. The bank’s net worth (capital plus reserves) increased to ₹1,368.61 crore from ₹1,264.56 crore, Bhandiwad added.
Total business:
- Despite the slowdown in economic activities caused by adverse environmental conditions, the bank managed to achieve a growth of ₹2,733 crore compared to the previous year, reaching a total business level (deposits+advances) of ₹35,884 crore from ₹33,151 crore. Deposits stood at ₹19,856 crore and advances at ₹16,027 crore.
Deposits:
- Deposits under CASA have risen from ₹8,217 crore to ₹9,029 crore, indicating a growth of ₹812 crore compared to the previous year. CASA now accounts for 45.47 per cent of the total deposits.
- The total deposit rose from ₹18,710 to ₹19,856 crore with a net increase of ₹1,146 crore, recording a growth of 6.12 per cent.
Advances:
- During the previous fiscal year, the bank disbursed ₹11,908.06 crore, while the outstanding level stood at ₹16,027 crore, registering a growth of 10 per cent. Out of the total disbursed amount, ₹8759.69 crore was allocated to the agriculture sector, ₹876.45 crore to MSME, ₹129.54 crore to the housing sector, and ₹48.08 crore to investment credit.
- The credit-to-deposit ratio (excluding IBPC) witnessed a rise from 73.44 per cent to 78.20 per cent in the financial year 2023-2024.
Priority sector credit achievement:
- Priority sector credit stood at ₹14,299 crore, constituting 89.21 per cent of total advances, surpassing the mandated target of 75 per cent set by the government/RBI.
- Agricultural credit accounted for ₹11,569 crore, making up 72.18 per cent of the bank’s overall credit.
- The share of weaker section advances stood at ₹7,974.12 crore, representing 49.75 per cent of the bank’s overall credit.
- During the year, a total of 458,879 Kisan Credit Cards (KCC) were issued, with an impressive amount of ₹8,711.60 crore disbursed.
Recovery:
- The economy exhibited signs of recovery post-COVID pandemic, due to the robust efforts made by the Central and state governments, along with supportive policies by the Reserve Bank of India. Nonetheless, challenges persisted in rural areas, particularly with erratic rainfall impacting economic development.
- The service area experienced a decline in CASA, RTD, and NPA recovery due to the emergence of drought in multiple districts. The bank overcame challenges by implementing tactics like tailored services, home visits, and involvement with Gram Sabhas, resulting in favorable results.
- The gross NPA decreased from 6.96 per cent to 5.72 per cent, while the net NPA also came down from 4.64 per cent to 3.40 per cent with an outstanding cash recovery of ₹741.1 crore during the year.
- The Bank has introduced an extremely flexible OTS scheme to assist borrowers, particularly farmers, in light of the current situation.
Profitability:
- The bank allocated ₹197.03 crore from the operating profit of ₹301.20 crore towards NPA and standard assets. As a result, the bank’s net profit reached ₹104.16 crore, showing a growth of 159 per cent.
- The productivity per employee has witnessed a rise from ₹10.08 crore to ₹10.98 crore, while the productivity per branch business has also experienced a rise from ₹52.71 crore to ₹57.05 crore.
Efficiency ratio:
- The capital adequacy ratio is currently at 11.57 per cent, surpassing the regulatory limits set for RRBs at 9 per cent.
Branch network:
- The bank operates in nine districts of North and Coastal Karnataka.
- Currently, the bank has 629 branches and 10 regional offices.
- 50 ATMs and 1 mobile ATM
- Implementation of Social Security Schemes (Inclusive Growth)
- The bank firmly believes that extending financial services to the disadvantaged and low-income groups at an affordable cost is of utmost importance to the nation. The bank has done exceedingly well in this domain.
Key highlights:
- Opened 23,12,007 Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts with a total deposit of ₹1,688.55 crore.
- Provided 21,73,377 policies under the Pradhan Mantri Suraksha Bima Yojana (PMSBY).
- Extended 9,98,201 policies under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
- Provided 4,27,736 policies under the Atal Pension Yojana.
National-level awards received during 2023–24
- The Bank has garnered national recognition for its successful implementation of social security schemes such as the Atal Pension Yojana, PMJJBY, and PMSBY.
- Additionally, the bank has been honored with nine national awards from PFRDA.
In the fiscal year 2024-2025, the bank aims to achieve a total business of ₹40,000 crore and has set ambitious milestones to accomplish. They are:
- Deposit level of ₹22,000 crore
- Advances level of ₹18,000 crore
- Net profit of ₹175 crore
More thrust to agriculture, MSME, retail, including housing, and investment credit
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