KVGB reports Rs 37 cr profit

Karnataka Vikas Grameena Bank (KVGB) has reported a net profit of Rs 37.68 crore for the year ended March 31, 2009. Its operating profit for the year stood at Rs 65.63 crore. The Bank’s reserves have risen to Rs 528.71 crore.

KVGB chairman K P Muralidharan said the bank had recorded a growth of 14.7 per cent in its total business at Rs 6,085 crore compared to the previous year. The Bank’s deposits grew by 25.4 per cent to Rs 3,459 crore compared to the previous year.

He said the special deposit mobilisation drive during the last quarter helped the bank to mobilise more than Rs 500 crore fresh deposits.

KVGB, through a network of 409 branches spread over nine districts, has disbursed Rs 1,053.41 crore loans and the outstanding loans stand at Rs 2,626 crore. The share of priority sector in the advances stood 85 per cent with agriculture getting Rs 521 crore, SME sector Rs 74 crore and industry Rs 162 crore.

Muralidharan said the bank had extended the benefit of Agricuture Debt Waiver and Debt Relief Scheme to 77,640 small farmers with a total amount of Rs 247 crore. “Further, 51,428 farmers were eligible for debt relief under the scheme with a total amount of Rs 142 crore.

Due to this there was sudden fall of advances which has resulted in lesser growth in outstanding advances. We have taken steps to increase farm loans by conducting credit counseling and other programmes” he explained.

The net profit of Rs 37.68 crore is after providing for non-performing assets (3.8 per cent) and making an ad hoc provision of Rs 10 crore for pending wage revision of employees. The Bank has credit linked 6,102 Self-Help Groups during the year.

It also plans to introduce ATMs in 25 branches and Core Banking System in the current fiscal.