Staff Correspondent

It earned a profit of Rs. 1.19 crore last year

  • The bank's deposits crosses Rs. 200 crore
  • The net NPA brought down from 29.29 to 18.12 per cent

    Madikeri: Efforts are on to convert Karnataka Rajya Kaigarika Sahakara Bank Niyamita (Karnataka State Industrial Cooperative Bank Ltd.) into a scheduled bank during 2006-07, vice-chairman of the bank Patil said on Monday.

    Addressing presspersons here, he said it was with this view the bank had started operating on the lines of commercial banks. It now provided loans to all sectors, including housing and vehicle purchase, apart from financing industrial activities.

    The bank, after overcoming the accumulated loss in 2003-04, earned a profit of Rs. 1.19 crore last year. Its deposits had crossed Rs. 200 crore and it had provided loans to the tune of Rs. 88 crore, Mr. Patil said. The bank was now selling gold coins, "suvarna mudra", weighing five gm, 10 gm and 50 gm, in association with a private bank, Mr. Patil said.

    Managing Director C.S. Veeresh said efforts were on to computerise bank's 37 branches in different parts of the State. The bank was now mobilising deposits from institutions and individuals with a view to providing loans to all sections of society.

    The net NPA of the bank had come down from 29.29 to 18.12 per cent. It would be brought to the single digit in a few months. A special scheme of "Suvarna Cash Certificate", which would fetch double the deposit amount in 96 months, had received good response across the State. It helped in raising Rs. 1 crore in just one month after it was launched in August 2006, he said.

    The Madikeri branch had disbursed Rs. 1.06 crore as loans under various categories as against the deposit mobilisation of Rs. 1.60 crore, Mr. Veeresh said. The branch posted a profit of Rs. 12 lakh last year. He said the bank premises would be shifted from Mahadevpet to College Road, above the SBM premises.

    Directors of the bank Jagadish, Aravind, Lakshman Gowda, Krishnaji Khanapuri and Basavaraj Horattimath were present.