Monday, 11 October , 2004,
NRI Press

Karnataka Bank is gearing up to offer its customers more facilities such as Internet banking, debit card, expansion in ATM network and the multi-city cheque facility.

Its Chairman, G. Ananthakrishna, told Business Line that the bank's immediate attention would be on offering more unique products to its customers. "Internet Banking would be a reality in two months. The work is through. We have had a security audit done by PricewaterhouseCoopers." The Chairman felt that with the non- resident Indian clientele base on the rise, this service could not be postponed any longer.

The NRI deposits have accounted for about 10 per cent of total deposits. The bank is hoping to reach the 12 per cent level very soon.

Replying to a query, he said the capital adequacy ratio (CAR) was at over 13 per cent. "Even if the Basel II norms were to be applied, the CAR would still be comfortable at around 9 per cent. Our systems are sophisticated. The bank's own funds are estimated at over Rs 700 crore. By the close of this fiscal, we are expecting it to touch Rs 1,000 crore."

Mergers and acquisitions, he said were the "talk of the day, not the order of the day as yet. However, the mantra is consolidation. It has to eventually happen, but the cultural, emotional and community factor will have to be dealt with, very carefully and that is not going to be easy. Even in the environment of bigger banks, smaller banks like ours have a definite role to play," he added.

The bank would continue to render personalised service to its customers. "We do not have the `call centre' culture. We believe that in the long run people will want personal touch and the workforce are fully geared to take on this challenge."

The bank's ATM network is being enhanced to 75 by the end of the current fiscal. It proposes to add another 25 next year, so as to have over a 125 ATMs within the next two years. "We have initiated a dialogue with IBRDT and NFS (National Finance Switch) for having access to other bank's ATMs. The proposal has been cleared in principle," Ananthakrishna said.