Karur Vysya Bank (KVB) was started with a paid-up capital of Rs 1 lakh in 1916 after World War I, with a view to revive agriculture, trade, and industry in and around Karur.
Today, the bank has a network of 281 branches covering 13 states and two union territories. KVB plans to reach the 500-branch figure within the next three years.
With a focus on technology, KVB has over 279 ATMs in India and has attached importance to semi-urban and rural areas for ATM penetration. KVB has issued one million Visa debit cards so far.
The bank has achieved a 100% networking of branches under core banking in 2005. The bank offers internet and mobile banking services. Karur Vysya Bank has a risk management system in place and it is also geared to meet Basel II norms.
KVB also markets the non-life policies of Bajaj Allianz, General Insurance Co Ltd and the life policies of Birla Sun Life Insurance. ?We provide technology services on par with the best in the industry at affordable rates,? declares chairman PT Kuppuswamy.
On the savings front, the bank?s spouse senior citizen scheme is a deposit product for senior citizens, where, in the unfortunate event of demise of either spouse during the term of the deposit, a 1% additional rate of interest over the contracted rate is offered to the surviving spouse.
Says Kuppuswamy, ?Competition in the banking sector is expected to intensify in the coming years. Almost all banks are expected to reach the same level on the technology platform. Service will be the differentiating factor.?
KVB is also planning to launch three new schemes targeted at senior citizens in the coming months.
Senior citizens apart, the changing demographics means customers are getting younger.
?Our focus is on technology so that we are able to meet the needs and demands of our young customers. Nearly one-fourth of our customers are below the age of 25 years,? says Kuppuswamy.
KVB is also focussing on the educational loan segment in a big way. ?The IT boom has resulted in professional courses being in demand like never before. A lot of youngsters are now applying for educational loans and the repayment circle is also quicker,? observes Kuppuswamy. He adds,? We would like our portfolio to be balanced. We would focus on retail loans, corporate and SME lending.?
KVB?s net profit for the nine month period ended December 2007 stood at Rs 137.79 crore compared to Rs 107.13 crore for the corresponding period in the previous year. Further, the present net owned funds of the bank is Rs 1232.14 crore.
KVB was the first Tamil Nadu-based private sector bank to cross the Rs 1,000-crore mark under capital funds and the third old generation private sector bank to do so. The bank?s capital adequacy ratio is 15.13% compared to 13.54% for the corresponding period last year.
The bank started depository services from last December. ?The online trading facility will be available to our customers from the next financial year,? says Kuppuswamy.
Moving forward, KVB is targeting a total business of over Rs 21,000 crore (2007-08). It is targeting advances to the tune of Rs 9,000 crore and is taking its branch network to over 290 during the current financial year.
?Retail credit accounts for one-fourth of the total credit. This figure is expected to jump to 30% by March 2009,? says Kuppuswamy. KVB plans to offer doorstep banking in the immediate future, as well as e-commerce facilities like the booking of train tickets through the KVB network, in association with Visa.
?Pilots are on currently,? reveals Kuppuswamy.