Kaveri Grameena Bank net up 36.5% in FY14

The bank extended loans of Rs 181.55 cr to 6,700 SHG during the year

Mysore-based Kaveri Grameena Bank (KGB), a regional rural bank sponsored by State Bank of Mysore, today announced that it has earned a net profit of Rs 44.75 crore, registering a year on year growth of 36.52 per cent during 2013-14. In 2012-13, it had earned a net profit of Rs 32.78 crore.

"The rise in net profit was aided by a 56.4 per cent rise in net interest income at Rs 61 crore for the year compared to Rs 39 crore in the previous year. Its non-interest income grew 45 per cent to Rs 55 crore as against Rs 38 crore in the previous year. The net interest margin has improved to 3.05 per cent from 2.69 per cent in the previous year," D Somasekhara Sastry, Chairman, KGB told reporters.

Its operating profit grew 57.2 per cent to Rs 61 crore during the year.

The bank operates in the districts of Mysore, Hassan, Tumkur, Bangalore Urban, Bangalore Rural, Ramanagar, Chamarajanagara, Mandya, Chikmagalur and Kodagu. About 310 out of 400 branches are spread in rural areas.

During 2013-14, the bank achieved a total business of Rs 8,402 crore, showing a growth of 22.49 per cent as against Rs 6,860 crore in FY13. Deposits grew 21.37 per cent to Rs 4,667 crore over previous year’s level.

Advances grew 22.49 per cent to Rs 3,735 crore. Of this, lending to agriculture amounted to Rs 2,180 crore.

The bank has extended loans amounting to Rs 181.55 crore to 6,700 self-help groups (SHG) during the year. The total number of SHGs credit linked by the bank is 18,993 and amount outstanding is Rs 328.43 crore.

KGB opened 66 new branches across the 10 districts of operation taking the branch network to 400 branches in 2013-14. All its branches are working under the core banking system. During 2014-15, the bank plans to open another 60 branches and reach the 500 branches network during the next year.

It is also aiming at a business growth of 20 per cent in 2014-15 and disburse Rs 2,280 crore by way of crop loans with interest at 7 per cent. The farmers will get interest incentive of 3 per cent from the government of India for prompt repayment. It also plans to introduce net banking and NRI accounts and mobile banking to its customers, Sastry added.