Karnataka Vikas Grameena Bank (KVGB) posted a net profit of Rs 40.25 crore in 2022-23, against a net profit of Rs 31.9 crore in 2021-22, recording a growth of 26.18%.

Shreekant M Bhandiwad, Chairman of KVGB, said the bank has strengthened its balance sheet by making adequate provisions and attaching importance to recovery.

Stating that the bank has initiated several innovative recovery strategies to reduce the new addition of NPAs (non-performing assets) and reduce existing NPAs during 2022-23, he said the bank’s gross NPAs were down from 9.37 percent in 2021. -22 to 6.96 percent in 2022-23. Net NPAs were reduced from 5.90% in 2021-22 to 4.64% in 2022-23, with outstanding cash recovery of Rs 1,240.81 crore during 2022-23.

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Considering the current situation and to help borrowers, especially farmers, the bank has introduced a flexible single payment 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 unable to timely realize profits from their agricultural products.

In 2022-23, the bank made gross income of Rs 1,910.43 crore and an operating profit of Rs 279.15 crore. After making a provision of ₹238.9 crore, the bank’s net profit stood at ₹40.25 crore.

Despite slowdown in economic activities caused by adverse environmental conditions, the bank achieved growth of ₹2,402.95 crore in 2022-23 compared to the previous fiscal year, reaching a business level of ₹33,150.80 crores. This comprised 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 35.7 billion and a net profit of Rs 150 crore. More impetus will be given to sectors such as agriculture, MSMEs, retail trade and investment credit, he said.

The bank, which operates in nine districts in northern and coastal Karnataka, has 629 branches and 10 regional offices. It also has 49 ATMs along with a mobile ATM.

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