Welcome to The Karur Vysya Bank Limited

THE KARUR VYSYA BANK LIMITED

A PROFILE

( As at 31.03.2009 )

OUR VISION: DELIGHT THE CUSTOMERS CONTINUALLY BY BLENDING TRADITION WITH TECHNOLOGY TO DELIVER INNOVATIVE PRODUCTS AND SERVICES AT AFFORDABLE RATES THROUGH A PAN INDIA BRANCH NETWORK

Welcome to Karur Vysya Bank – the bank that carries with it a tradition of 93 years and yet is young enough to adapt itself to the rapidly changing scenario in the banking industry.

Origins:

Karur Vysya Bank was started in the year 1916 in Karur, then a small textile town with a vast agricultural background, by two illustrious sons of the soil – Sri M.A. Venkatarama Chettiar and Sri Athi Krishna Chettiar. What started as a venture with a seed capital of Rs. 1.00 lakh has grown into a leading financial institution that offers various financial services to millions of its customers under one roof.

Financial landmarks of the bank:

Ø Total business of the bank was at Rs.25664.29 cr. with total deposits at Rs. 15101.39 cr. and total advances at Rs. 10562.90 cr. as on 31.03.2009. KVB is the first Tamilnadu based private sector bank to cross the milestone figure of Rs. 25000 cr. total business.

Ø The net owned funds of the bank are Rs. 1350.16 cr. KVB has strong capitalization levels, with high proportion of Tier I capital at 96.53% which implies the strength of owned funds. Entire Tier II capital forms a meager part (3.47%), which consists of provision for standard assets only.

Ø The bank has a Capital Adequacy Raito of 14.92% as against the RBI stipulated norm of 9%.

Ø The bank has one of the lowest net NPA ratios in the country @ 0.25%.

Ø The bank has been earning profits since inception and has been declaring dividend uninterruptedly.

Ø The bank has declared 100% dividend since 2003-04. For 2005-06, 2007-08 and 2008-09, the dividend was 120%.

A snapshot of the Bank’s performance under various parameters for the past three financial years is as follows:

(Rs. In crores)

Particulars	2006- 07	2007- 08	2008 - 09
Deposits	9340.29	12549.99	15101.39
Advances	7040.48	9528.84	10562.90
Net Profit	160.01	208.33	235.84
Capital Funds	1063.16	1190.00	1350.16
Capital Adequacy	14.51%	12.58%	14.92%
Net NPA	0.23%	0.18%	0.25%

Branch and ATM network:

The bank has a branch network of 312 and an ATM network of 322. The bank plans to improve the branch network to over 350 by the end of the financial year 2009 -10.

Technological accomplishments:

KVB is one of the earliest banks in the country to achieve full networking of its branches under Core Banking Solutions, offering services through multiple delivery channels. Some of the noteworthy accomplishments of KVB are:

Ø Any Branch Banking.

Ø Multicity Account facilities for both current and savings bank customers.

Ø Internet Banking.

Ø On line utility bill payments facility through Billdesk

Ø On line shopping facility through CCAvenues

Ø e-commerce facilities backed with the safety of Verified by VISA

Ø Mobile Banking.

Ø Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) facilities at all branches.

Ø VISA Debit card facility with a card base of over 1.50 million

Ø Access to over 320 KVB ATMs and over 13000 domestic ATMs under the VISA / NFS / MITR /Axis bank cluster and over 1 million VISA ATMs worldwide.

Ø Card to Card and Card to account transfer of funds through KVB ATMs

Ø Payment of institutional fees through ATMs

Ø Payment for air tickets (Kingfisher) through KVB ATMs

Ø Mobile top up facility at KVB ATMs.

Ø Only old generation private sector bank among six banks identified by RBI to implement the Cheque Truncation project at New Delhi.

Ø Only old generation private sector bank among six banks identified by RBI to implement Speed Clearing at Mumbai.

Ø 24 X 7 toll free professional help desk services for all ATM, Internet Banking, Mobile Banking and e-commerce transactions.

Banking and Para banking services:

Ø KVB offers several deposit and loan products, tailormade to cater to the needs of all its customers.

Ø The bank offers all types of general insurance policies through a tie-up with M/s Bajaj Allianz General Insurance Company

Ø The bank offers life insurance policies through a tie-up with M/s Birla Sun Life Insurance Company.

Ø The Bank distributes the Mutual Fund products of SBI MF, Reliance MF, Sundaram BNP Parbas MF, Birla Sunlife MF, Franklin Templeton MF and LIC MF.

Ø The Bank is a Depository Participant through NSDL and opens demat accounts

Ø Off-line and on-line trading facility is available to the demat customers enabled through a tie-up with M/s Religare Securities Ltd and M/s IDBI Caps respectively.

Recognitions:

Awarded the "Banking Technology Excellence Awards - 2008" for Best use of IT for Customer Service in Semi-Urban and Rural Areas by Institute for Development and Research in Banking Technology, Hyderabad.
Rated as the Most Efficient Small Bank by Business Today – KPMG and as the No. 1 old private sector bank by Financial Express – Ernst & Young for two years in succession (2006 & 2007).
Rated by Business World and Business Today as the No. 2 Old Private Sector Bank in 2008.
Received the CFBP Jamnalal Bajaj Award for Fair Business Practices in the Financial Sector Category. The award has been instituted by the Council for Fair Business Practices, Mumbai based on evaluation parameters like customer satisfaction, customer communication, employee motivation, social conscience, corporate social responsibility and compliance with laws.

Future outlook:

The bank has in place robust risk management systems and adheres to the tenets of Corporate Governance. The bank is well-equipped to boldly take up the challenges in the industry and emerge as a top-notch one-stop-shop techie financial supermarket. KVB will continue its endeavours to bring the best of products and services to its customers to emerge as the techie bank that provides the gateway to Smart Way to bank.

For more information about the bank, its products and also to record your feedback, please log on to www.kvb.co.in

Some of our customer friendly products

Our Deposit Products: Some of our value added deposit schemes that offer the best interest rates in the industry and transaction comfort to the customers are:

v Multicity Current Account, with in built flexibility such that customers can avail of a host of services at concessional rates based on the Monthly Average Balance maintained by them.

v KVB Freedom Savings Bank Account offers payable at par cheques facility to our SB customers, besides other facilities like, Net Banking, Mobile Banking, funds transfer, issue of demand drafts, either fre e or at concessional rates/ nominal rates, besides VISA Debit card.

v KVB Yuvashakti Savings Bank Account is meant for young persons in the age group of 20 – 35 years and offers several free services besides temporary overdraft facility (subject to conditions)

v Rainbow Savings Bank Account (RBSB), combines the convenience of a Savings bank account with the returns of a term deposit account through auto sweep-in/sweep-out facilities.

v Tirumagal Tirumana Thittam (TTT), a reinvestment deposit plan, enables planning for the educational/marriage expenses of the children.

v Manimala, a Monthly Deposit plan provides the convenience of small investment and high returns, by depositing a pre-determined amount every month for a fixed period.

Our Loan Products: Some of our products that offer tailor-made solutions for the loan requirements of our customers are:

ü KVB Vartagamitra to meet the working capital requirements of traders

ü KVB Fleximobile for purchase of a four-wheeler to provide mobility

ü KVB Rentfin that provides finance against future rent receivables

ü KVB Doctors’ Loan that provides finance to doctors to set-up/improve their practice

ü KVB Professional Loan that provides term finance for all categories of professionals

ü KVB Good Health that helps meet sudden hospitalization expenditure

ü KVB Bon Voyage that finances expenditure incurred for business, official or personal visits abroad

ü KVB Happy Home that provides finance for purchase of the dream house

Besides, there are several schemes for the specific requirements of farmers like, KVB Green Card, KVB Green Trac, KVB Harvester and KVB Kisan Mitra. Also, timely and adequate finance is provided to industries, SMEs and traders.