Karnataka Bank Ltd has set a target of achieving a business of ₹1.8 lakh crore by 2020.
The ‘KBL Vision 2020’ document, a business plan for the next five years, which was approved by the board of directors of the bank recently, envisages a total business of ₹1.8 lakh crore. This includes deposits of ₹1 lakh crore and advances of ₹80,000 crore by March 2020.
(The bank achieved a total business of ₹77,689 crore, including deposits of ₹46,009 crore and advances of ₹31,680 crore during 2014-15).
According to the document, CASA (current account savings account) deposits are expected to constitute 27.40 per cent of the total deposits by March 2020.
Focusing on the expansion of retail and mid-corporate credit, the vision document expects these two to constitute around 70 per cent of the total advances by March 2020.
The net interest margin, which was 2.36 per cent by the end of March 2015, is expected to touch 3.01 per cent by March 2020. The bank aims to bring the gross and net NPAs (non-performing assets) below 1.5 per cent and 0.60 per cent, respectively, by the end of the vision period.
Quoting P Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, who released the ‘Vision 2020’ document in Mangaluru on Friday, a press release said that for achieving the various projections in the document the bank will take advantage of emerging opportunities; upgrade its IT infrastructure; strengthen its audit, vigilance and risk management practices and compliance culture; and take steps to improve the efficiency of people, processes and products by continuously evolving new strategies and policies.