Investor Communication on Managing Director & CEO Interview with Business Line
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From: [email protected] [mailto:[email protected]] Sent: 10 May 2021 20:58 To: Subject: [MARKETING] Greetings from Karnataka Bank – MD interview with BusinessLine Karnataka Bank Ltd. Your Family Bank, Across India Regd. & Head Office Phone: 0824-2228222 Fax: 0824-2225588 P. B. No.599, Mahaveera Circle E-mail: [email protected] Kankanady Website : www.karnatakabank.com Mangaluru – 575 002 CIN: L85110KA1924PLC001128 Dear Shareholder, We are pleased to attach an extract of the interview given by Shri Mahabaleshwara M S, Managing Director & CEO of the Bank to the BusinessLine newspaper which was published on May 7, 2021 for your information. With best wishes, Investor Relation Cell The Karnataka Bank Ltd. For all investor grievances related issues please make use of e mail Id:[email protected] only. ‘Karnataka Bank will focus on cost-light liability portfolio’ AJ VINAYAK ciple of ‘conserve, consolidate ZY cent for business turnover for sight of economic turn- extended loan period. Fur- three months considering Mangaluru, May 7 and emerge stronger’ im- the current fiscal. Consider- around. ther, the borrowers have also the current progress. It is ex- The Mangaluru-based mensely helped us to tide ing the Covid-19 second wave, remodelled their business pected that once the herd im- Karnataka Bank navigated the over the said crisis-like situ- we expect growth challenges Do you think the fresh and became more agile. How- munity is developed, the challenges posed by the ation and be able to come out in key sectors during the first Covid wave will lead to the ever, it is also expected that surge of Covid would also Covid-19 pandemic last year, with satisfactory numbers. half of the current year. Even increase in the NPAs in the revival and recovery may take come down significantly. Like and earned a net profit of But now the situation is dif- though MSME and agricul- coming days? If yes, how more than the expected time. previous fiscal, our bank ₹451.20 crore in the first ferent. At least now, ture sectors are less impacted are you planning to handle RBI has also recently an- would continue to be cau- nine months of 2020-21 we have one year of which are the main compon- that? nounced a ‘booster dose’ with tious in lending and would against a profit of experience in navig- ents of our retail loan book Even though the economic various relief measures both ensure adding remunerative ₹431.78 crore for the O ating through the growth, the entire ecosystem impact of the second wave of for the bankers and indi- and quality assets besides fo- full year of 2019-20. pandemic and that To overcome Covid second of the economy already took a Covid pandemic have just vidual borrowers, small bor- cusing on a cost-light liability In an interview to is a huge advantage. wave, our bank will shock and it may need suffi- started unfolding, no one can rowers and MSMEs. This is ex- portfolio. BusinessLine, Mahabaleshwara To overcome Covid second continue to practise the cient time to come out of this, take it lightly and it may be pected to give the required Necessary steps will be MS, MD and CEO of the bank, wave, our bank will continue principle of ‘conserve, if there are no more waves of too early to foresee the im- impetus to the economy. taken at our disposal to pro- highlighted the strategies that to practice the principle of consolidate and emerge Covid going forward. pact. The banking industry in Hence, the response for Covid tect the interest of all our helped the bank to perform ‘conserve, consolidate and stronger’ along with the We also expect the custom- India has fully exhibited its 2.0 and going beyond, should stakeholders. With the strong better, and its plans for the emerge stronger’ along with required cost cutting ers to be conservative in in- resilience and was able to face be collective, comprehensive, fundamentals and improved current financial year amidst the required cost cutting measures this year too vesting in new or big projects the challenges posed by the decisive and long lasting be- capital adequacy ratio, we are the second Covid wave. measures this year too. We or expansion of business. Our first wave of Covid, mainly be- sides forward looking. confident of sailing smooth MAHABALESHWARA MS Excerpts: will continue to be cautious MD and CEO focus will be to conserve, cause of the ‘economic vac- this year also in spite of un- and conservative. We will fo- Karnataka Bank maintain the asset quality cines’ in the form of regulat- Going by the current foreseen challenges. YZ India is witnessing the cus on developing a cost-light and grow steadily with qual- ory packages such as trend, Covid waves are Like earlier economic second wave of Covid. How liability portfolio by concen- ity during this fiscal. How- moratorium, OTR / MSME re- likely to recur at regular shocks such as the global re- is your bank planning to trating more on CASA and Your recent letter to the ever, the bank will always be structuring, Emergency intervals. How is your cession, global financial crisis tackle this fresh challenge? low-cost retail term deposits shareholders mentioned in a ‘ready mode’ to catch up Credit Line Guarantee bank planning to handle of 2007-08, this time too In- The first half of the last fiscal besides developing a healthy that the bank is aiming at a business at any stage of eco- Scheme, charging of simple this? dian banking sector, I am was spent in understanding asset portfolio which is ‘moderate’ growth of 12 nomic rebound, beating our interest during moratorium, With vaccination initiatives sure, will withstand the chal- and fighting the pandemic largely protected against the per cent for 2021-22. What own guidance level. We have etc announced by the Govern- and with awareness being lenges and come out with fly- while the business was muted ill effects of pandemic in the are the reasons for this superior digital loan journey ment / Reserve Bank of India. created among the public ing colours. and there was no clear picture long run to tide over the eco- moderate outlook? infrastructure and in a better By opting for the said ‘eco- about this, it is hoped that We will stand rock solid about the Covid-19 pandemic. nomic challenges associated Yes. The bank has set a moder- position to encash such op- nomic vaccines’, borrowers maximum people would get with the Government, RBI Our innovative business prin- with the Covid wave 2.0. ate growth target of 12 per portunities on the very first managed their cash flow with vaccinated in about two- and the customers. .