Karur Vysya Bank posts Rs.2.08 bn net profit

June 6th, 2008 - 7:00 pm ICT by IANS  

Chennai, June 6 (IANS) The Karur Vysya Bank, one of the oldest private sector banks in the country, has posted a net profit of Rs.2.08 billion ($49.5 million) for 2007-8 against Rs.1.60 billion of the previous fiscal, a growth of 30.2 percent. The bank announced Friday that it had registered a total income of Rs.12.89 billion in 2007-8 as compared to Rs.9.86 billion in year before, registering a 30.69 percent increase.

The interest income from advances increased by 38.17 percent to Rs.8.58 billion from Rs.6.21 billion. The other income rose to Rs.1.55 billion from Rs.1.19 billion.

According to P.T. Kuppuswamy, the bank’s CEO and managing director, the total business went up to around Rs.221.18 billion in the last fiscal against Rs.165.34 billion in 2006-07.

“The board has recommended a dividend of 120 percent. The bank has declared 100 percent dividend for the past four years,” he said.

Kuppuswamy added that bank had set a target of a total business of Rs.280 billion for the current fiscal. The bank is also planning to increase its branch network to over 320 units from the current strength of 291.

The bank is drawing up plans to attract the youth with modern technology for growth and long-term sustainability.

“The bank will target the youth offering convenience banking facilities like any other new generation banks and new products,” Kuppuswamy said.

While the high earning youth will be tapped for deposits, he said, the bank will boost its assets to fund young entrepreneurial ventures.

In order to retain experienced talent, Karur Vysya Bank will shortly implement an employee stock option (ESOP) scheme and has reserved around 1 million shares for this purpose.

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