Karnataka Bank to add more branches

Mangalore-based Karnataka Bank Ltd, will add 15 more branches to its existing 385 chain of branches by the end of current fiscal.

The bank intends to strengthen its network in North India by opening more branches. In the current fiscal, the bank has opened 12 new branches in cities such as Raipur, Navi Mumbai, Nasik, Dehradun,New Delhi, Dwarka and Chennai.

To meet the proposed expansion plan, the bank will invest Rs 10 crore.

Chairman of Karnataka Bank, Ananthakrishna, told Business Standard, "The bank will expand its all India presence, by opening up more than 15 branches at the national level."

At an inauguration of the bank's ATM on Sunday, in Vadodara, he said that the bank had a strong base in South India. They have 350 branches in the South. Further on, he said, "Now, we intend to expand further to other parts of the country; especially the northern parts of the country, where we have minimum presence."

According to V M Samaga, deputy general manager, Karnataka Bank, new branches will come up in cities of Uttar Pradesh and Delhi. In Delhi, the bank has 11 branches. Some of the new branches will be established in Bangalore, Mumbai, Chennai, and Hyderabad, where the bank already has its presence.

For the expansion of the branches, the bank has adequate fund with it, said Ananthakrishna. Earlier, the bank had raised Rs 160 crore through an IPO in 1995. "We had issued bonus shares and rights issue in the year 2002 and last fiscal year, we again raised funds by issuing rights issue to our shareholders.

The funds raised would be used for the expansion of branches, along with the surplus fund of Rs 22 crore, which the bank holds," added Ananthakrishna.

The bank claims to have reserves and capital worth Rs 978 crore. The bank is in tie with the Corporation Bank to utilise its ATM network. Karnataka Bank too has its own network of 100 ATMs across the nation.