K'taka: KVGB records huge operating profit

Dharwad, May 4: Karnataka Vikas Grameena Bank (KVGB) first in in the state and fourth in the country as regional rural bank has made a tremendous growth by netting a huge operating profit of Rs 124 crore during the financial year ended on March 31, 2008, M Dhananjaya, Chairman said here today.

Mr Dhananjaya told a press conference that the bank had earned a net profit of Rs 72.13 crore, after making required provisions and also setting aside an amount towards payment for income tax which spoke of financial stability. The year to year growth under total business is 21 per cent and growth of 24 per cent over last year (2006-07), he said. He said the recovery percentage of the bank is 73 per cent, the NPAS form 3.58 per cent of total outstanding loans. Bank's net NPA percentage is zero, he said.

He said plans for year 2008-09 is mobilise Rs 3500 crore of deposits, reach a level of Rs 3000 crore of loan outstanding, reach a total business level of Rs 6500 crore, disburse Rs 1500 crore of loans to farmers.

Open ten new branches to add its existing 407 branches in Dharwad, Gadag, Haveri, Udupi, Mangalooru, Shivamogga, Karwar districts and conduct more social activities and ultimate aim is to emerge as a customer-friendly with strong financial fundamentals, he said.

He said that bank had disbursed Rs 1275 crore loans in its nine districts last year. Rs 796 crore mainly towards agriloans, Rs 10 crore for allied activities, Rs 213 crore for business, bank has been actively participating govt sponsored schemes, the share of loans to priority sector is Rs 983 crore (77 per cent) under Kisan Credit schemes, bank gave Rs 681 crore to 100,508 farmers.

He said bank has identified 411 villages for money lending eradication and already this scheme is on in 135 villages in its area, he said. He said bank has 32 lakh customers, KVGB is encouraging and intervening NRE/NRI customers also. More and more branches will be provided with core-banking and ATMs facilities, he added.

UNI