 "Karur Vysya puts aggressive expansion on hold until economic climate improves")
The Tamil Nadu-based private sector lender which had started a branch expansion drive since 2009-10, and currently has 612 branches across the country has decided not to focus on expansion as each new branch would take at least one to two years to break even and the current investment climate is not conducive. KVB has a network of 16 divisional offices, 1,648 ATMs and 300 plus cash deposit machines and currently employs 7300 people.
"Economy pick up has not happened as yet. Positive sentiment is there, but unless the investment climate improves for both in public and private sectors. We are sure that it will improve but till than we have to wait," said K Venkataraman, MD & CEO, Karur Vysya Bank.
Speaking at the 98th Founders' Day celebration of the bank here on Friday, Venkataraman further mentioned that the plan is to have 35-40 branches under each of its 16 divisional offices spread across the country. However, for real business growth, the Bank would need to hire locals, and it is currently building up its human resources.
He further maintained that the bank was not interested in inorganic growth, but was more keen on organic route for growth. In Gujarat, the bank has 15 branches with total advances of Rs 1,300 crore in the state and Rs 1,250 crore of deposits. Nationally, the bank has total business of Rs 80,862 crore with total deposits of Rs 45,116 crore and advances of Rs 35,746 crore. Its net profit stood at Rs 326.45 crore for nine months period ending December 2014.
"We have also been investing substantially in Gujarat State Government Bonds for many years and as of date our investment in Gujarat Government securities is Rs 586 crore," Venkataraman said.