• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Net down: The Chairman of Karnataka Vikas Grameena Bank, Mr K.P. Muralidharan, briefing presspersons on the bank’s performance in Dharwad on Monday.

Our Bureau

Mangalore, May 4

The Dharwad-headquartered Karnataka Vikas Grameena Bank (KVGB) has recorded a net profit of Rs 37.68 crore for 2008-09 as against Rs 72.13 crore in the previous fiscal. The lesser net profit during 2008-09 has been attributed to the decrease in advances due to agriculture debt waiver and debt relief scheme.

During 2008-09, the business level of the bank stood at Rs 6,085 crore (Rs 5,305 crore). While the bank registered a deposit of Rs 3,459 crore (Rs 2756.74 crore), the outstanding advances stood at Rs 2,626 crore (Rs 2547.86 crore).

Asked about the reason for decline in net profit during 2008-09, Mr K.P. Muralidharan, Chairman of KVGB, told Business Line that there was lesser growth in advances during the year. Under the Agriculture Debt Waiver and Debt Relief Scheme, 77,640 small farmers were extended the benefit of loan waiver to the tune of Rs 247 crore, and 51,428 farmers were eligible for debt relief to the tune of Rs 142 crore. “Due to this there was a sudden fall of advances. This has resulted in lesser growth in outstanding credit,” he said.

He said that the net profit is after providing fully for NPAs and making an ad-hoc provision of Rs10 crore for pending wage revision of the employees.

Though the gross NPAs increased to 3.81 per cent (3.58 per cent), the bank could make an absolute recovery of Rs 27 crore with recovery management and also through invoking the provisions of the SARFAESI Act. “It is a matter of special mention that the bank has fully provided for the entire NPAs and, hence, the net NPA level is nil,” he said.

Mr Muralidharan attributed the growth in deposits to the special deposit mobilisation campaign during the fourth quarter. This campaign helped the bank to mobilise more than Rs 500 crore fresh deposits.

The bank could augment income to the extent of Rs 81.28 crore through the investment portfolio during the year.

Mr Muralidharan said that the bank proposes to reach a business level of Rs 8,000 crore during the current financial year and Rs 10,000 crore by the end of 2010.

The bank wants to implement core banking solution during the current year in a phased manner, he added.

More Stories on : Financial Performance | Regional Rural Banks | Karnataka

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line