Karur Vysya Bank is a privately held Indian bank, headquartered in Karur in Tamil Nadu. The company operates in four business segments: treasury operations, corporate/ wholesale banking operations, retail banking operations and other banking operations. The company's investments are categorized into three categories, held to maturity, held for trading and available for sale.
Karur Vysya Bank was incorporated on June 22, 1916. The Bank commenced their operations on July 1, 1916 in the aftermath of the First World War, with a view to revive agriculture, trade and industry in and around Karur. In January 17, 1927, they opened their first branch at Dindigul.
In the year 1952, the Bank became a scheduled bank. In the year 1963, Selvavridhi Bank Ltd was amalgamated with the Bank. Also, in the year 1964, Salem Shri Kannika Parameswari Bank Ltd and Pathinengrama Arya Vysya Bank Ltd, Kombai were amalgamated with the Bank. In the year 1965, Coimbatore Bhagyalakshmi Bank Ltd merged with the Bank. In the year 1980, the Bank got the license to deal in foreign currencies and to transact foreign exchange business. They established International Division for forex operations.
In the year 1995, the Bank issued 20,00,000 bonus shares in the ratio of 1:1 which was followed by rights issue in the ratio of 1:2 at a premium of Rs 25 per share during the year 1996.
In the year 2003, the company obtained license to act as a Corporate agent for the purpose of procuring or soliciting life insurance business and general insurance business. They made a tie up for bancassurance with Bajaj Allianz General Insurance to hawk their non-life insurance products through their branches. In the year 2004, they completed 100% computerization of branches and offices. In the year 2005, they implemented CBS in all branches.
During 2004-05 the Bank introduced 6 new loan products, namely KVB Special Home Loan, IPO Funding Scheme, KVB Kisan Mithra Scheme, Easy Trade Fin Scheme, KVB Happy Kisan Scheme and Gold Card Scheme for Export Constituents of the Bank. Also, they launched a new product, 'Cash Passport' which is similar to ATM/ Debit card and this product is offered in pursuance of the agreement entered into with 'Travelex' which is engaged in travel related services all over the world.
During the year, the Bank entered into an agreement with MITR consortium in which the customer can use the ATMs of Punjab National Bank, Oriental Bank of Commerce, Indian Bank and UTI Bank. Also, the Bank implemented RTGS facility for instant funds transfer across the country in 26 centres.
During the year 2005-06, the Bank launched Mobile Top-up facility to re-charge the cell phone of all service providers through the ATM. They opened new branches at Ludhiana, Chandigarh, Trichy-Srirangam, Nerul-Mumbai, Krishnagiri, Noida and Amritsar.
In the year 2008, the Bank won the prestigious CFBP Jamnalal Bajaj Award for Fair Business Practices. In the year 2009, the Bank received Banking Technology Excellence Award 2008 for the best use of IT for customer service in Semi Urban and Rural Areas given by the IDRBT.
During the year 2008-09, the company opened 23 new branches and upgraded one extension counter into a full fledged branch. They entered into a tie-up with Religare Securities Ltd for providing trading facility to the Demat customers. Also, they entered into tie-up arrangement with LIC Mutual Fund for distributing their products.
During the year 2009-10, the company expanded their network in order to increase the market share. They opened 23 new branches and 54 new ATMs. The Bank received the Gold CIO award in more than Rs 1000 crore category of the Enterprise Connect Awards '09 instituted by CIOL (Cyber Media India Online Ltd). They Received Banking Technology Excellence Award instituted by IDRBT for under the category 'Best IT Infrastructure Management' for the year 2009.
As of December 31, 2010, the Bank has set up 360 branches, 437 ATMs, 7 satellite offices, 13 service centres and 24 administrative offices. They have implemented core banking solutions across all its branches.
The Bank has set up a Disaster Recovery Site (DRS) at Cyber Pearl, Hi-Tech City, Hyderabad. The Bank is ensuring less than 30 minutes old data backup of the Primary Data Centre Databases at this DRS using a Disaster Recovery Automation Solution.