Ad Here  
February
March
April
May
June
July
 
 
All that glitters is not gold... A development bank for BRICS Aadhaar, niraadhaar and banking Bank deposits account for 46.3 per cent of household savings Small is ‘more’ beautiful It’s a war on black money, support it. Drastic decline in asset quality Ferrying digital banking to Lakshadweep Financial inclusion vs unclaimed deposits Who is the real beneficiary? Bottomlines shrink, bad loans rise... Banking overhauling or reorganisation? Stage set for Indian ‘avatar’ of foreign banks Grows Bigger Payment banks have arrived Cautious and considerate Holy or unholy? Merger mania haunts banks Well-lived... Nothing much can happen…. United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu One down in private sector Growing gainfully Governance in Reverse Gear? Anytime banking to anywhere banking Emerging crisis A new development bank rising in the east… How okay are new banks? Drop in SLR- sparing lendable resources Cut in repo rate – lower than expected Why any time money? Good, bad and ugly Why priority status? Indian customers are tech savvy The paradox: clamour for the Goliath and David Another route for achieving financial inclusion New bank licences, at last... New capitals of Migrant banks Too big to fail and too small to sail Greet Lakshmi the banking robot Small finance payment banks... Two banks: their jubilees and performances Banking in Telangana LVB- A supermarket of financial services Banking on Risk Fund healthcare clinics in villages... Big bank merger, bigger expectations Perhaps small is more beautiful than big! What is the priority – mergers or NPA reduction? Cradle of banks to a smart city... The collaboration suite of cyber criminals Ernakulam excels... Just 660 days! Target over-ambitious... Thirty more cities seek to become SMART Insatiable appetite for credit Rationalised Targets continue to be ad hoc How ‘secure’ are the secured loans? Growing volume of stressed assets… Hesitancy in announcing year-end results Capital base of regional rural banks raised Monetary policy continues to adopt dis-inflationary path Needed a Banking Atlas Managing NPAs... From lazy banking to easy banking Mega merger is on A bank for women, by women Smart banking in smart cities Reaching out: is it slowing down? Reaching the Unreached… Small finance banks offer high interest rates Lacklustre credit expansion
 
Well-lived...
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 :
RELATED NEWS
ABOUT IE
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
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com