About
Karur Vysya Bank Ltd
Karur Vysya Bank is a privately held Indian bank, headquartered in Karur in Tamil Nadu. The company operates in four business segments: treasury operations, corporate/ wholesale banking operations, retail banking operations and other banking operations. The company's investments are categorized into three categories, held to maturity, held for trading and available for sale.
Karur Vysya Bank was incorporated on June 22, 1916. The Bank commenced their operations on July 1, 1916 in the aftermath of the First World War, with a view to revive agriculture, trade and industry in and around Karur. In January 17, 1927, they opened their first branch at Dindigul.
In the year 1952, the Bank became a scheduled bank. In the year 1963, Selvavridhi Bank Ltd was amalgamated with the Bank. Also, in the year 1964, Salem Shri Kannika Parameswari Bank Ltd and Pathinengrama Arya Vysya Bank Ltd, Kombai were amalgamated with the Bank. In the year 1965, Coimbatore Bhagyalakshmi Bank Ltd merged with the Bank. In the year 1980, the Bank got the license to deal in foreign currencies and to transact foreign exchange business. They established International Division for forex operations.
In the year 1995, the Bank issued 20,00,000 bonus shares in the ratio of 1:1 which was followed by rights issue in the ratio of 1:2 at a premium of Rs 25 per share during the year 1996.
In the year 2003, the company obtained license to act as a Corporate agent for the purpose of procuring or soliciting life insurance business and general insurance business. They made a tie up for bancassurance with Bajaj Allianz General Insurance to hawk their non-life insurance products through their branches. In the year 2004, they completed 100% computerization of branches and offices. In the year 2005, they implemented CBS in all branches.
During 2004-05 the Bank introduced 6 new loan products, namely KVB Special Home Loan, IPO Funding Scheme, KVB Kisan Mitra Scheme, Easy Trade Fin Scheme, KVB Happy Kisan Scheme and Gold Card Scheme for Export Constituents of the Bank. Also, they launched a new product; 'Cash Passport' which is similar to ATM/ Debit card and this product is offered in pursuance of the agreement entered into with Travelex', which is engaged in travel related services all over the world.
During the year, the Bank entered into an agreement with MITR consortium in which the customer can use the ATMs of Punjab National Bank, Oriental Bank of Commerce, Indian Bank and UTI Bank. Also, the Bank implemented RTGS facility for instant funds transfer across the country in 26 centres.
During the year 2005-06, the Bank launched Mobile Top-up facility to re-charge the cell phone of all service providers through the ATM. They opened new branches at Ludhiana, Chandigarh, Trichy-Srirangam, Nerul-Mumbai, Krishnagiri, Noida and Amritsar.
In the year 2008, the Bank won the prestigious CFBP Jamnalal Bajaj Award for Fair Business Practices. In the year 2009, the Bank received Banking Technology Excellence Award 2008 for the best use of IT for customer service in Semi Urban and Rural Areas given by the IDRBT.
During the year 2008-09, the company opened 23 new branches and upgraded one extension counter into a full-fledged branch. They entered into a tie-up with Religare Securities Ltd for providing trading facility to the Demat customers. Also, they entered into tie-up arrangement with LIC Mutual Fund for distributing their products.
During the year 2009-10, the company expanded their network in order to increase the market share. They opened 23 new branches and 54 new ATMs. The Bank received the Gold CIO award in more than Rs 1000 crore category of the Enterprise Connect Awards '09 instituted by CIOL (Cyber Media India Online Ltd). They Received Banking Technology Excellence Award instituted by IDRBT for under the category 'Best IT Infrastructure Management' for the year 2009.
As of December 31, 2010, the Bank set up 360 branches, 437 ATMs, 7 satellite offices, 13 service centers and 24 administrative offices. They have implemented core-banking solutions across all its branches.
The Bank has set up a Disaster Recovery Site (DRS) at Cyber Pearl, Hi-Tech City, Hyderabad. The Bank is ensuring less than 30 minutes old data backup of the Primary Data Centre Databases at this DRS using a Disaster Recovery Automation Solution.
During the financial year 2013-14, Bank opened 21 Branches and added 345 ATMs. With this, as at the end of March 31, 2014 the Bank has a total network of 572 branches and 1617 ATMs with PAN India presence. The aggregate customer outlets of the Bank (both Branch net work and ATMs installed) rose to 2189. To facilitate remittance of cash on real time basis to customers' accounts, your Bank has introduced 153 Cash Deposit Machines or Bunch Note Acceptors (BNA).
The Bank has 667 branches and 1655 ATMs as on 31 March 2016. The bank had added 38 branches and 10 ATMs during the year to improve its footprint throughout the country including un-banked centres in tune with RBI guidelines.
The Board of Directors at its meeting held on 19th September, 2016 considered and approved the sub-division of one equity share of the Bank having face value of Rs 10/- each into five equity shares of face value of Rs 2/- each and consequential alteration in the relevant clauses of Memorandum and Articles of Association of the Bank and the same was approved by the Members of the Bank through postal ballot on October 27, 2016. Board of Directors of the Bank fixed November 18, 2016 as Record Date for the purpose of sub-division of face value of equity shares of the Bank. Accordingly equity shares of face value of Rs 2/- each were issued to all the members who were holding equity shares of Rs 10/- each on November 18, 2016.
The Bank has 711 branches and 1747 ATMs as on 31 March 2017. The Bank had added 44 branches and 115 ATMs during the year to improve its footprint throughout the country including un-banked centres in tune with RBI guidelines accounted for technology initiatives.
During the fiscal 2017-18, the Bank has successfully raised capital by way of Rights Issue in the ratio of one Rights Share for every six shares held on the record date (i.e., October 13, 2017) along with Employee Reservation Portion of 11,73,17,101 Equity Shares of face value of Rs 2/- each for cash at a price of Rs 76/- per Equity Share (including a premium of Rs 74/- per Equity Share) aggregating to Rs 891.61 Crore. The Rights Issue was over subscribed by 1.53 times, which shows the belief and confidence on the Bank's business and its future. The Rights Shares allotment was made on 22nd November 2017.
During the FY 2017-18, Bank has opened 79 branches including 2 digital branches and 1 extension Counter. The Bank has also opened 6 Corporate Business Units (CBU), 5 Central Loan Processing Cells (CLPC), 3 Asset Recovery Branches (ARB) and a Currency Chest at Hyderabad. The total number of branches as on 31 March 2018 stood at 790. The Bank has 1795 ATMs and 533 BNA Recyclers meant for serving the customers of the Bank as on 31st March 2018, which includes 78 ATMs and 90 BNA Recyclers installed during the year under report.
Karur Vysya Bank Ltd
Chairman Speech
<dhhead>CHAIRPERSON'S MESSAGE</dhhead>
Dear esteemed Shareholders,
I take immense pleasure in writing this letter to you - my first &
foremost - on behalf of the Board of Directors of Karur Vysya Bank.
Before I share with you some context around the several positive
developments that unfolded in the Bank during the year under review - which heralds the
opportunities in the years to come -1 would like to briefly touch upon the broader
transitions that impacted us - both global and domestic.
Macroeconomic scenario
The Financial Year 2022-23 was another year of significant challenges
for the world. Almost all the nations felt the effects of the ongoing war in Ukraine,
growing geopolitical tensions, higher energy and food prices and inflation concerns. Going
forward, the global growth is expected to stabilize during Calendar Year 2024 and however,
the progress is expected to be gradual.
On the domestic front, the economy exhibited resilience -
notwithstanding the significant inflationary pressures driven by global supply shocks and
higher input costs. This resilience is attributable to the various measures taken by both
the Government and the Reserve Bank of India. The targeted supply management measures
implemented by the Government and successive hikes in the policy REPO rate by the
Regulator, helped in moderating inflation. Now, the country is poised to regain its
pre-pandemic growth trajectory and an increasing optimism could be seen among the
businesses and consumers.
The banking industry witnessed a double digit growth in credit offtake
during the year and with RBI tightening the liquidity to combat inflation, the Indian
Banks sprinted up to garner term deposits by offering attractive rates. The industry also
saw a healthy trend in asset quality and steadily enhanced their Return on Assets, Return
on Equity and overall profitability. Banks continued to address the customers' preferences
by building channel-less commerce system, unlocking value via customer data and also by
opening new branches.
Our sustained performance
In this backdrop, I would like to highlight a few glimpses about what
was another eventful year for the Bank and update you on our performance & progress
made during Financial Year 2022-23. We steadfastly pursued our strategy built on
three main pillars viz., Business Growth, Asset Quality and
Profitability and grew our total business by 12% to RS 1,40,806 Crore. We posted a full
year Net Profit of RS 1,106 Crore, the highest ever in the history of the Bank and trimmed
down the GNPA and NNPA levels to 2.27% and 0.74% respectively. We delivered a decent
performance across most of the critical financial indicators through organic growth,
equally contributed by all the verticals.
The growth in Advances, Net Interest Margins, Return on Assets, Gross
Slippages and NNPA levels were in line with the guidance given by the Bank. We further
strengthened our Provision Coverage Ratio by allocating prudent provisions and are well
prepared to tide over uncertainties which may arise in the usual course of business. The
letter of MD & CEO in this Annual Report will give you more specific details about our
businesses and our plans for the future.
Our strategic priorities
Our vision is simple: To be the preferred choice of stakeholders and
deliver value by blending technology with tradition.
Hence, it is imperative that we run a healthy, vibrant and a
responsible bank. To this end, we continue to open branches in southern and western India,
enlarge our digital presence through non-branch channels and tie ups, enhance our
investments in technology and fast growing data platforms, rope in best-in-class talent
pools/skillsets and improve our operational efficiency at all levels of business. When all
these tenets react together, we will be well equipped to fulfill our customer needs and
also tide over the competition.
We focused on delivering our strategies through our strategic levers
viz., People, Processes, Practices, Planning and Partnerships. I am glad to inform you
that our strategies continue to pay off.
Our robust performance reflects more than the cyclical economic
recovery and is underpinned by our ability to consistently adapt & evolve our broad
range of diverse capabilities to service our customers' changing needs.
We are focused on continuously improving our risk management and
confining our business plans within the acceptable contours of our risk appetite. We also
focus on improving the productivity of our people and also invest in technology while
exercising strict credit discipline.
The Board remains fully supportive of the Management's strategies which
is helping us to build long term value and deliver long term growth as well as sustainable
returns for our shareholders. In short, we recognize our strengths and vulnerabilities,
and we play our hand as best we can.
Strengthening our board team
You will note that since the last Annual General Meeting, there have
significant changes in the Board. We had to bid farewell to five Directors during the
financial year, including the Chairman of the Bank, consequent to their completion of
office. We owe our sincere thanks for the critical role played by them in transforming the
Bank as a strong financial institution and also for their strong commitment, diligence and
valuable contributions during their tenure in the Board. On behalf of the board, I wish
them all success in their future endeavours.
I am very glad to share with you that RBI has accorded its approval for
reappointment of our MD & CEO Shri B Ramesh Babu for a second term of three years
effective from 29th July 2023. I also take this opportunity to welcome Shri
Chinnasamy Ganesan, Director, a seasoned professional in the areas of taxation, audit,
accounting etc., to the Board of the Bank and I am sure his induction will further
strengthen the collective decision making process of the Board. I am equally happy to
share with you that the shareholders have approved the
I place on record my sincere appreciations for their admirable
dedication in aligning with the strategies and enabling the Bank to deliver on the
promises. I extend my heartfelt thanks to our customers, stakeholders, investors and all
the shareholders for the continued support, confidence and above all the trust reposed on
us. reappointment of Shri K G Mohan and Dr R Harshavardhan as Directors of the Bank
through postal ballot and their continued services will further enrich the Bank.
At KVB, we continue to place a strong emphasis on the diverse
composition of our Board of Directors. Presently, our Board consists of Six Non-Executive
Independent Directors including me, Two Non-Executive Non-Independent Directors and one
whole time Director i.e. MD & CEO. All our Directors bring with them diverse knowledge
and experience and they also ensure that ethical standards are upheld and exemplary
oversight is maintained across the organisation. The vast experience and varied
perspectives of each member of our Board is highly valued and is integral in formulating
policies and strategies of the Bank and the Board continues to be guided by their expert
and diverse points of views.
Environmental, Social and Governance
Environmental sustainability has always been an area of focus for the
Bank. We refined our governance framework related to sustainability agenda and revamped
the terms & reference of the Board level Corporate & Social Responsibility
Committee to impart additional focus on ESG. We also engaged a leading consultancy firm to
assist the Bank in implementing ESG aspects and the Bank has been closely working with the
Firm in this regard.
We strive to create a positive and lasting impact on the environment
through our actions and are committed to promoting responsible practices and making
positive contributions to the society. We are also committed to enhance our ESG
disclosures, including disclosing the information aligned to relevant frameworks and
standards.
Supporting the community
Right since the inception of the Bank, we never failed to do that we
should be doing to serve our communities, in order to make a positive difference in the
society. We firmly believe that an organisation can be successful in long term by creating
value for both our shareholders and society and we remain un-wavered in this commitment.
During the Financial Year 2022-23, we had committed about RS 12.84
Crore for a diversified range of CSR activities and this is over & above the mandatory
budget of . RS 11.58 Crore. We continue to serve the underprivileged and our social
development initiatives spans across Healthcare, Sanitation, Education, Environmental
Sustainability, Women Empowerment and :e Rural Development.
Road ahead
Looking back, I am humbled by how far we I have come and how far we are
yet to go.
I am happy that the Bank has fortified its internal strengths, as we
enter the Financial Year 2023-24 with renewed confidence. We will be more focused on what
lies ahead and will strive to deliver decent results to our investors and shareholders.
Going forward, our priorities will be to sustain the decent performance
of the past two years and focus on long-term growth and development of our business, while
increasing shareholder returns and creating shared value. We will continue to drive
digitisation, expand non-branch delivery points, strengthen the Feet on Street, establish
dedicated sub-verticals for our flagship products and forge strong partnerships with NBFCs
& Fintechs for colending and sourcing.
However, we remain vigilant of the potential macroeconomic and
geopolitical factors, inflation and other intrinsic risks in the banking system.
Acknowledgements
An organisation's prosperity requires a great team of people with
experience, foresight, determination, perseverance, integrity, capabilities and high
standards of excellence to ensure its ongoing success. I would like to compliment the
leadership team for their relentless efforts and execution capabilities which helped us to
unlock greater value for the Bank.
I place on record my sincere appreciation for the admirable dedication
of our staff members in aligning with the strategies and enabling the Bank to deliver on
the promises. I extend my heartfelt thanks to our customers, stakeholders, Debenture
Holders, investors and all the shareholders for the continued support, confidence and
above all the trust reposed on us. I am sure that with your strong support, the Bank will
move to new heights.
Regards,
| Dr Meena Hemchandra, Chairperson |
Karur Vysya Bank Ltd
Company History
Karur Vysya Bank is a privately held Indian bank, headquartered in Karur in Tamil Nadu. The company operates in four business segments: treasury operations, corporate/ wholesale banking operations, retail banking operations and other banking operations. The company's investments are categorized into three categories, held to maturity, held for trading and available for sale.
Karur Vysya Bank was incorporated on June 22, 1916. The Bank commenced their operations on July 1, 1916 in the aftermath of the First World War, with a view to revive agriculture, trade and industry in and around Karur. In January 17, 1927, they opened their first branch at Dindigul.
In the year 1952, the Bank became a scheduled bank. In the year 1963, Selvavridhi Bank Ltd was amalgamated with the Bank. Also, in the year 1964, Salem Shri Kannika Parameswari Bank Ltd and Pathinengrama Arya Vysya Bank Ltd, Kombai were amalgamated with the Bank. In the year 1965, Coimbatore Bhagyalakshmi Bank Ltd merged with the Bank. In the year 1980, the Bank got the license to deal in foreign currencies and to transact foreign exchange business. They established International Division for forex operations.
In the year 1995, the Bank issued 20,00,000 bonus shares in the ratio of 1:1 which was followed by rights issue in the ratio of 1:2 at a premium of Rs 25 per share during the year 1996.
In the year 2003, the company obtained license to act as a Corporate agent for the purpose of procuring or soliciting life insurance business and general insurance business. They made a tie up for bancassurance with Bajaj Allianz General Insurance to hawk their non-life insurance products through their branches. In the year 2004, they completed 100% computerization of branches and offices. In the year 2005, they implemented CBS in all branches.
During 2004-05 the Bank introduced 6 new loan products, namely KVB Special Home Loan, IPO Funding Scheme, KVB Kisan Mitra Scheme, Easy Trade Fin Scheme, KVB Happy Kisan Scheme and Gold Card Scheme for Export Constituents of the Bank. Also, they launched a new product; 'Cash Passport' which is similar to ATM/ Debit card and this product is offered in pursuance of the agreement entered into with Travelex', which is engaged in travel related services all over the world.
During the year, the Bank entered into an agreement with MITR consortium in which the customer can use the ATMs of Punjab National Bank, Oriental Bank of Commerce, Indian Bank and UTI Bank. Also, the Bank implemented RTGS facility for instant funds transfer across the country in 26 centres.
During the year 2005-06, the Bank launched Mobile Top-up facility to re-charge the cell phone of all service providers through the ATM. They opened new branches at Ludhiana, Chandigarh, Trichy-Srirangam, Nerul-Mumbai, Krishnagiri, Noida and Amritsar.
In the year 2008, the Bank won the prestigious CFBP Jamnalal Bajaj Award for Fair Business Practices. In the year 2009, the Bank received Banking Technology Excellence Award 2008 for the best use of IT for customer service in Semi Urban and Rural Areas given by the IDRBT.
During the year 2008-09, the company opened 23 new branches and upgraded one extension counter into a full-fledged branch. They entered into a tie-up with Religare Securities Ltd for providing trading facility to the Demat customers. Also, they entered into tie-up arrangement with LIC Mutual Fund for distributing their products.
During the year 2009-10, the company expanded their network in order to increase the market share. They opened 23 new branches and 54 new ATMs. The Bank received the Gold CIO award in more than Rs 1000 crore category of the Enterprise Connect Awards '09 instituted by CIOL (Cyber Media India Online Ltd). They Received Banking Technology Excellence Award instituted by IDRBT for under the category 'Best IT Infrastructure Management' for the year 2009.
As of December 31, 2010, the Bank set up 360 branches, 437 ATMs, 7 satellite offices, 13 service centers and 24 administrative offices. They have implemented core-banking solutions across all its branches.
The Bank has set up a Disaster Recovery Site (DRS) at Cyber Pearl, Hi-Tech City, Hyderabad. The Bank is ensuring less than 30 minutes old data backup of the Primary Data Centre Databases at this DRS using a Disaster Recovery Automation Solution.
During the financial year 2013-14, Bank opened 21 Branches and added 345 ATMs. With this, as at the end of March 31, 2014 the Bank has a total network of 572 branches and 1617 ATMs with PAN India presence. The aggregate customer outlets of the Bank (both Branch net work and ATMs installed) rose to 2189. To facilitate remittance of cash on real time basis to customers' accounts, your Bank has introduced 153 Cash Deposit Machines or Bunch Note Acceptors (BNA).
The Bank has 667 branches and 1655 ATMs as on 31 March 2016. The bank had added 38 branches and 10 ATMs during the year to improve its footprint throughout the country including un-banked centres in tune with RBI guidelines.
The Board of Directors at its meeting held on 19th September, 2016 considered and approved the sub-division of one equity share of the Bank having face value of Rs 10/- each into five equity shares of face value of Rs 2/- each and consequential alteration in the relevant clauses of Memorandum and Articles of Association of the Bank and the same was approved by the Members of the Bank through postal ballot on October 27, 2016. Board of Directors of the Bank fixed November 18, 2016 as Record Date for the purpose of sub-division of face value of equity shares of the Bank. Accordingly equity shares of face value of Rs 2/- each were issued to all the members who were holding equity shares of Rs 10/- each on November 18, 2016.
The Bank has 711 branches and 1747 ATMs as on 31 March 2017. The Bank had added 44 branches and 115 ATMs during the year to improve its footprint throughout the country including un-banked centres in tune with RBI guidelines accounted for technology initiatives.
During the fiscal 2017-18, the Bank has successfully raised capital by way of Rights Issue in the ratio of one Rights Share for every six shares held on the record date (i.e., October 13, 2017) along with Employee Reservation Portion of 11,73,17,101 Equity Shares of face value of Rs 2/- each for cash at a price of Rs 76/- per Equity Share (including a premium of Rs 74/- per Equity Share) aggregating to Rs 891.61 Crore. The Rights Issue was over subscribed by 1.53 times, which shows the belief and confidence on the Bank's business and its future. The Rights Shares allotment was made on 22nd November 2017.
During the FY 2017-18, Bank has opened 79 branches including 2 digital branches and 1 extension Counter. The Bank has also opened 6 Corporate Business Units (CBU), 5 Central Loan Processing Cells (CLPC), 3 Asset Recovery Branches (ARB) and a Currency Chest at Hyderabad. The total number of branches as on 31 March 2018 stood at 790. The Bank has 1795 ATMs and 533 BNA Recyclers meant for serving the customers of the Bank as on 31st March 2018, which includes 78 ATMs and 90 BNA Recyclers installed during the year under report.