Karur Vysya Bank to launch demat facility, net banking

As part of its 90th anniversary celebrations, Karur Vysya Bank Ltd is planning to offer new value added products like dematerialisation system and internet banking for financial transaction.

Speaking to Business Standard, P T Kuppuswamy, chairman of the bank, said with the launch of the dematerialisation system, customers would be able to convert their securities into electronic form. The bank will tie-up with IDBI capital market for launching the facility, which will be introduced at all its prominent branches.

The bank has posted an all-time high profit of Rs 135.35 crore in the year ended on March 31, 2006.

The bank is also planning to introduce internet banking for financial transaction. "Currently, all the 240 branches are interconnected and the bank is well equipped to migrate to base-II regime as its operations are 100 per cent computerised. Besides, the bank has core banking solution in place which can cater to varied data requirements," he said. The bank is planning to introduce these services by July.

"With the introduction of internet banking, the customers will be able to, for example, convert their savings accounts into a fixed deposit without even visiting our branch. A new software is being developed by Flex Cube softwares for this. As of now, we are working out foolproof safety and security mechanism before the launch," Kuppuswamy added.

The bank is also planning to open more branches across the country. The bank has already obtained licences from the Reserve Bank of India to open 44 branches in the country. This will include 12 in Tamil Nadu, eight in Andhra Pradesh, and five in Karnataka.

The bank is targeting to reach deposits of Rs 9,000 crore and advances of Rs 6,750 crore by the end of the next financial year. At the year ending on March 31, 2006, the deposits were Rs 7576.84 crore while the advances touched Rs 5,555.44 crore.

The bank reordered an aggregate growth of 16.30% in the financial year. It is also aiming to cross Rs 1,000 crore in the net-owned funds.The capital funds of the bank increased to Rs 871.63 crore by March-end, 2006 from Rs 760.88 crore in the previous year.