Shareholders approve Karur Vysya Bank to raise Rs 1200 crore from tier 1 debt

Private sector Karur Vysya Bank (KVB) Tuesday said it has received approval from shareholders to raise Rs 1,200 crore tier I debt, to meet capital requirement.

The Tamil Nadu-based bank had recently declared financial results for the first quarter ending June 30, 2018, with net profit registering at Rs 68.97 crore as against Rs 147.97 crore registered during the year-ago period.

The bank's Managing Director and CEO, P R Seshadri in a brief interaction with PTI on the sidelines of an event marking the company's 70th Founders' Day said, "We have now approval to raise Rs 1,200 crore tier I or tier II debt.

The fundraising is basically to meet capital (requirement)". Seshadri and senior bank executives were here to announce a first-of-its-kind initiative in which retail and business loans up to a maximum of Rs two crore, can be sanctioned by processing application via digital route instead of a traditional paper-based method.

"Our engagement with customers has become digital now. If you are a businessman, I can give you a loan up to a maximum of Rs two crore without the use of paper. For loans of above Rs two crore, we still follow the traditional method," he said. To another query, he said, the bank allotted Rs 20 crore to tap digital technology and offer loans, electronically.

"Total expenses (for the digital processing of loans) is roughly about 1.5 percent of the annual expenditure. Roughly it is about Rs 20 crore," he said.

Karur Vysya Bank currently has 788 branches, 1,803 ATM and 538 cash deposit machines across the country. The bank beside offering financial products on retail, commercial segments, also provides life and non-life insurance to customers.

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