South India-based Karur Vysya Bank Ltd is targetting 26 per cent annual profit growth by adding new branches to create a pan-India presence, a top bank official has said today.
"We are looking at a growth in profits by 26 per cent during the year. This year we are taking the number of our branches from 340 to 375 and half of the new branches would be in the northern parts of the country," Managing Director and Chief Executive Officer P T Kuppuswamy said on the sidelines of a inaugural function of its 341st branch.
Karur Vysya, the regional bank with most of its branches in Tamil Nadu and Andhra Pradesh, is all set to have a bigger national presence.
The bank reported a growth of 21 per cent in its net profit at Rs 84.48 crore for April-June.
Kuppuswamy expected a 33 per ent growth in its credit and 31 per cent rise in its deposits in 2010-11 to levels of Rs 17,000 crore and Rs 25,000 crores respectively.
The bank was aiming to bring down deposit costs by increasing the share of current accounts from 24 per cent to 30 per cent.
Karur Vysya was aiming to achieve a deposit base of Rs 70,000 crore and a loan portfolio of Rs 55,000 by 2015-16, when the bank would be celebrating its centenary year, he said.
At present, the bank business is worth Rs 34,465 crore with total deposits at Rs 20,274 crore and total advances at Rs 14,191 crore.
The bank is yet to take a call on fund raising for 2010-11, a decision to be taken by the bank board later, he said.
