The Dharwad-headquartered regional rural bank Karnataka Vikas Grameena Bank (KVGB) recorded a net profit of ₹31.90 crore during 2021-22 against ₹6.5 crore in 2020-21, registering a growth of 391 per cent.
P Gopi Krishna, Chairman of KVGB, said the bank has strengthened its balance sheet by making aggressive provisions and giving importance for recovery.
Gross NPAs (non-performing assets) of the bank came down to 9.37 per cent in 2021-22 against 13.91 per cent in the previous fiscal, and net NPAs to 5.90 per cent from 9.66 per cent with an outstanding cash recovery of ₹1,460.66 crore during the year.
Though the Covid outbreak and continuous drought for the last five-six years affected the bank’s recovery efforts, KVGB initiated various innovative recovery strategies to curtail fresh addition of NPA and reduce the existing NPA during 2021-22, he said.
Considering the present situation, the bank has come out with very flexible one-time settlement scheme for borrowers, especially farmers, he said.
KVGB’s operating profit stood at ₹330.19 crore in 2021-22 against ₹124.9 crore in 2020-21, and gross income at ₹1,991.16 crore (₹1,589.53 crore).
After making a provision of ₹298.29 crore towards tax and other provisions, the bank recorded a net profit of ₹31.90 crore in 2021-22, he said.
The bank was able to show a growth of ₹2,930 crore in its total business during 2021-22. The bank’s business stood at ₹30,748 crore during 2021-22 against ₹27,818 crore in 2020-21. This growth was despite the slowdown in economic activities due to adverse environment conditions and Covid outbreak, he said.
Deposits up
Total deposits of the bank increased to ₹17,646.98 crore in 2021-22 from ₹16,100 crore in the previous fiscal. CASA (current account savings account) deposits increased from ₹6,517 crore to ₹7,608 crore during the period. He said CASA constitutes 43.10 per cent of the total deposits of the bank.
Advances rise
The outstanding advances of the bank stood at ₹13,100.88 crore recording a growth of 11.80 per cent over the previous fiscal. He said the credit-deposit ratio of the bank increased from 72.8 per cent to 74.2 per cent during 2021-22.
The share of priority sector to the total advances was at 88.37 per cent. This is far above the government target of 75 per cent, he said, adding agricultural credit formed 66.33 per cent of the total credit of the bank.
Capital adequacy ratio of KVGB stood at 10.09 per cent, which is well above the regulatory limits fixed for regional rural banks at 9 per cent, he said.
Stating that the bank is looking to achieve a total business of ₹33,000 crore in 2022-23, Gopi Krishna said the bank is targeting a business level of ₹18,900 crore, and advances of ₹14,100 crore during the period. More thrust will be given to agriculture, MSME, retail and investment credit during 2022-23, he added.