Ad Here  
Reaching out: is it slowing down? Another route for achieving financial inclusion Rationalised Drop in SLR- sparing lendable resources Good, bad and ugly Banking on Risk Stage set for Indian ‘avatar’ of foreign banks Banking in Telangana Why any time money? Grows Bigger Smart banking in smart cities Growing volume of stressed assets… Holy or unholy? Lacklustre credit expansion Small is ‘more’ beautiful Big bank merger, bigger expectations How ‘secure’ are the secured loans? Why priority status? Who is the real beneficiary? Thirty more cities seek to become SMART Reaching the Unreached… Merger mania haunts banks Hesitancy in announcing year-end results Perhaps small is more beautiful than big! One down in private sector Bank deposits account for 46.3 per cent of household savings The collaboration suite of cyber criminals Emerging crisis Fund healthcare clinics in villages... Needed a Banking Atlas New bank licences, at last... LVB- A supermarket of financial services A new development bank rising in the east… Managing NPAs... Just 660 days! Target over-ambitious... Governance in Reverse Gear? A development bank for BRICS Insatiable appetite for credit Greet Lakshmi the banking robot Drastic decline in asset quality Cautious and considerate Bottomlines shrink, bad loans rise... United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu Banking overhauling or reorganisation? Growing gainfully Financial inclusion vs unclaimed deposits The paradox: clamour for the Goliath and David Targets continue to be ad hoc Cut in repo rate – lower than expected Small finance payment banks... What is the priority – mergers or NPA reduction? Nothing much can happen…. All that glitters is not gold... Ernakulam excels... It’s a war on black money, support it. Monetary policy continues to adopt dis-inflationary path Small finance banks offer high interest rates Ferrying digital banking to Lakshadweep Too big to fail and too small to sail New capitals of Migrant banks How okay are new banks? Capital base of regional rural banks raised Anytime banking to anywhere banking Aadhaar, niraadhaar and banking Mega merger is on Well-lived... Two banks: their jubilees and performances Indian customers are tech savvy From lazy banking to easy banking Payment banks have arrived Cradle of banks to a smart city... A bank for women, by women
Amidst the dirge songs on dismal bank performances, the record of Karur Vysya Bank provides great relief.

Participating in the centenary celebrations of KVB, President Pranab Mukherjee said that the Indian banking system and the Indian economy are doing reasonably well compared to their western counterparts. President Mukherjee, who held the portfolio of revenue and banking in 1975, pointed to the spectacular growth of banking over the last four decades: the number of branches has increased from 6800 to 117,000.


Original identity still preserved...


KVB was promoted by enterprising leaders of Vysya community in Karur to mobilise the savings of society and meeting its credit needs. Managing Director K Venkataraman (KV) described its evolution: starting with one office in 1916, KVB opened its first branch in 1927, 100th in 1977 and 200th in 1997. In line with the rapid growth of the economy in the first decade of the new millennium, KVB has been registering spectacular expansion post-2007. Today, it has a pan-India branch network of 683, 1691 ATMs and 386 cash deposit machines.  KV pointed to the impressive CAGR of 19 per cent recorded over the last five years, in a period when the sector has been struggling with a slowdown, stressed assets, increasing provisions…

For the year ended 31 March 2016, KVB had a total business of Rs. 89,555 crore. The resources were prudently employed with a credit deposit ratio of 78.83 per cent. The operations have been profitable; net profit for the last year was Rs. 567.63 crore, owned funds were at a handsome Rs.4572.95 crore related to a paid up equity of just Rs.121.86 crore. The capital adequacy ratio was a comfortable 12.17 per cent and net NPA 0.55 per cent.

With the evolution of Karur as a vibrant textile centre and a builder of sophisticated bus bodies over commercial vehicles and housing, this century-old bank has catalysed a couple of large industries: Tamil Nadu Newsprint and Papers Ltd that pioneered newsprint-based on bagasse and a cement plant of the Chettinad Cement Corporation are located in Karur.


Differentiated banking  and digital excellence


The spectacular record was built on technology, systems, and modern management practices. Venkataraman pointed to the two-pronged strategy of differentiated banking and going digital. The bank has positioned itself as a niche bank for small and medium enterprises with customised packages of products to cater to the particular needs of different trade and industry segments. KV pointed to the domain knowledge accumulated by its managers that have been used to keep track of the health of various sectors, assessing specific requirements and developing special product packages.  

It should not, therefore, be surprising that KVB should have reached the 100-year milestone on its original identity with the professional progeny of the original founders still in control of the centenarian.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236