Karnataka Bank to double biz by 2015

Karnataka Bank to double biz by 2015

The Rs 55,000 crore, Mangalore-based Karnataka Bank plans to grow its business to Rs 1 lakh crore by fiscal 2015. The bank’s board has approved the business process reengineering report submitted by management consultancy firm KPMG Advisory Services (P) Ltd.

“The initiatives recommended will be rolled over the next 18 months across three key aspects of our business -- deposits, advances and products and services. Initially, KPMG will handhold the process, while later, we will take care of the implementation.

We intend to grow from the current Rs 55,000 crore (as of June, 2012) business to about Rs 1 lakh crore by March, 2015,” Managing Director P Jayarama Bhat said.
He was speaking on the sidelines of launching the bank’s mobile banking service “KBL Mobile”, a Rs 30 lakh investment to deliver additional delivery channel for its customers.
Karnataka Bank’s target for the current fiscal is Rs 65,000 crore, 25 per cent more than 2011-12. It expects about one lakh customers to switch over to mobile banking in the next six months.

The bank also plans to gradually alter the business mix of its advances portfolio, Bhat said.

“Retail loans will be about 60 per cent of our advances and the rest will be corporate,” he said. Currently, retail loans constitute 46 per cent and 54 per cent comprise corporate loans.

The bank plans to open about 40 branches across India this year. It’s present network comprises 509 branches, about 400 ATMs and six million customers.