KARNATAKA

Bank gets nod to open 37 branches



Correspondent

387 branches of KVG Bank are serving 18 lakh customers in 2,198 villages

Bank has mobilised a deposit of Rs. 1, 860 crores and advanced loans to the tune of Rs. 1,690 crores ATM facility to be introduced in Dharwad Farmers' panels formed to monitor advancement of loan and its repayment

Karwar: Chairman of Karnataka Vikasa Grameena Bank B.S. Surendra has said that the bank is committed to serve customers in rural areas with all sincerity.

Talking to presspersons here on Friday, he said 387 branches of the bank are serving 18 lakh customers in 2,198 villages. While the bank has mobilised deposits to the tune of Rs. 1,860 crores, it has advanced loans for Rs. 1,690 crores.

The credit deposit ratio stands at 99 per cent. He said the loan recovery is 75 per cent and net non-performing assets of the bank are 2.18 per cent.

Mr. Surendra said that 75 per cent of the advances are in priority sector. Agricultural loan constitutes 54 per cent of the advances. He said the Reserve Bank of India has permitted to open 37 new branches in the State this year.

He said that an automated teller machine (ATM) facility will be introduced in Dharwad branch on an experimental basis.

He said the bank stands first among all 166 rural banks in the country with regard the performance.

The bank has a reserve of Rs. 300 crores. As such it can compete with commercial banks, he claimed.

Mr. Surendra said the Centre, the State Government and Syndicate Bank have their shareholdings of 50 per cent, 15 per cent and 35 per cent respectively. Therefore the bank is safe in all respects.

He said 35 farmers' committees have been formed in Uttara Kannada district to monitor advancement of loan, its repayment and activities of farmers to improve their standards. The bank provides pledge loan to farmers to enable them to store their produce in their house till they get a better price.