KVG Bank achieves impressive growth in FY23, introduces innovative recovery strategies

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Karnataka Vikas Grameen Bank (KVGB) recorded a net profit of Rs. 40.25 crore in 2022-23, as against a net profit of Rs. 31.9 crore in 2021-22, registering a growth of 26.18 per cent.

Shrikant M Bhandiwad, Chairman of KVGB, said the bank has strengthened its balance sheet by making appropriate provisions and giving importance to recovery.

Noting that the bank has initiated several innovative recovery strategies to limit the new addition of NPAs (non-performing assets) and reduce existing NPAs during 2022-23, he said the total NPAs of the bank decreased from 9.37 percent in 2021-22 to 6.96 percent in 2022. -23. Net NPAs fell from 5.90 per cent in 2021-22 to 4.64 per cent in 2022-23, with an impressive cashback of Rs. 1,240.81 crore during 2022-23.

Considering the current situation and to help the borrowers, especially the farmers, the bank introduced a one-time flexible settlement scheme. He said the bank’s recovery efforts were hampered by heavy rains in the service area, which affected agricultural activities and other economic sectors. He added that in most cases, farmers were not able to achieve the returns of their agricultural products in a timely manner.

In 2022-23, the bank had total income of Rs. 1,910.43 crore and operating profit of Rs. 279.15 crore. After saving Rs. 238.9 crores, the bank’s net profit came to Rs. 40.25 crores.

Despite the slowdown in economic activities caused by adverse environmental conditions, the Bank achieved a growth of Rs.2,402.95 crore in 2022-23 over the previous financial year, reaching a business level of Rs.33,150.80 crore. This consisted of deposits of ₹18,710.43 crore and advances of ₹14,440.37 crore.

On the outlook for 2023-24, Bhandiwad said the bank is targeting a business level of Rs. 35,700 crore and a net profit of Rs. 150 crore. He said more push will be given to sectors such as agriculture, micro, small and medium enterprises, retail trade and investment credit.

The Bank operates in nine districts in North and Coastal Karnataka, and has 629 branches and 10 regional offices. It also has 49 ATMs along with one mobile ATM.