Next budget will be trendsetter for economic growth: P Jayarama Bhat

Daijiworld Media Network - Mangaluru

Mangaluru, Feb 11: Karnataka Bank is set to celebrate its 91st founder’s day on February 18, 2015 in the city. Padma Bhushan Dr K Radhakrishnan, former chairman, ISRO, Bengaluru will deliver ‘The Founders' Day’ lecture. Ananthakrishna, chairman of the bank will preside over the function.

Daijiworld Weekly editor-in-chief Hemacharya spoke to P Jayarama Bhat, MD and CEO of the bank and other top executives following the release of banks financial results for the third quarter of 2014 -15.


"There are signs of industrial downturn phasing out steadily and business sentiments gaining momentum, we are optimistic about business excellence in Q4 of FY 2015" - said P Jayarama Bhat, managing director and CEO of Karnataka Bank Limited, one of the premier banks in the private sector which had its humble beginning in a small town of Mangaluru, ninety years ago.

He was expressing his views after releasing his banks financial performance in quarter three of 2014 – 15. While explaining the reasons for posting only a muted net profit of 0.22 percent at 106.94 crore for the third quarter of 2014 – 15, (as against 106.70 crore in the same period last year) he said, although this performance was quite expected, its the result of downturn in industrial growth and blurred political situation.

"However," he said, "the new government sounds pro-economy and its has set in motion quite many projects which development oriented. We expect a robust financial growth in the next quarter. We expect to achieve a turnover of '80,000 crore in 2014-15, comprising of '47,000 crore in deposits and '33,000 crore in advances. I am hopeful that the next Union Budget will be a trend setter for economic growth."

When asked what were his expectations from the next budget, he said, "Not that we expect something extraordinary from the new government in terms of budgetary announcements. The government has already displayed its zeal and willingness to spearhead our economy to a new level. In that respect anything new, like policy clearances and a suitable climate for good business including in banking sector is a welcome trend."

Karnataka Bank which commenced its business with a single branch in Dongerkery in Mangalore in 1924 has emerged as a family bank across India with its presence in 21 states and 2 Union Territories. In its 90 years of purposeful banking, the bank has 1,472 outlets (640 branches 832 ATMs) across the country and it bagged several excellence awards.

DW also spoke to M S Mahabaleshwara Bhat, chief general manager who reaffirmed the sentiments of his managing director/CEO. He said - "We are the first people in the private sector to translate the shift the benefits from modern technology, to our customers, by setting up of most modern facilities, including ATM facility. Our plans (opening of new branches and ATM’s) are based on customers’ requirement, not something out of impulsion or compulsion."

DW: Are you apprehensive about new banking coming up, like ‘Bharatiya Mahila Bank’ and a new bank to be floated by T V Mohandas Pai and his friends, which will have its head office in our district?

MB: We welcome anyone who comes and sets up banking activity in India. In a way, these banks would be like our partners in business as will benefit from each others success.

"Do you feel a mere 0.22 per cent net profit is good enough, in view of an excellent track record of your bank?”

MB: Like our Chairman has already stated, this performance was resultant from higher provisions during the quarter. The provisions went up 97 per cent to Rs 79 crore from Rs 40 crore in the previous period. At the same time you will find the net interest income going up by 11 per cent to Rs 302 crore from Rs 272 crore a year ago.”

DW: As a credible banker, what you expect from the next Budget?

MB: We expect the government to move beyond its traditional focus areas like agriculture, education, defence and create a sustainable climate conducive for domestic and international investors.

DW: Do you face manpower crunch in your bank, now that a job in a bank is no more perceived as lucrative? Do you get qualified and motivated staff?

MB: I am proud to say, our bank has no dearth of skilled and motivated staff who come from all sections of the country. Our focus is to identify the inherent skills in them, train them in line with our objectives, empower them and set them free to handle the business. The average age of our staff is 35 years which reflects our banks ‘young blood’ policy. Our training is need based and a continuous process. We have just recruitment almost 610 clerks and more than 200 officers at the bank.


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Comment on this article

  • Karthikeyan, Chennai

    Thu, Feb 12 2015

    Please include benefits for farmers, river linking project and need to start new green revolution and new infrastructure for business and industries

    Ordinary people should get benefit in the budget so country will improve

    Jai Hind

    DisAgree Agree [1] Reply Report Abuse Agree [1]

  • martin,

    Thu, Feb 12 2015

    & budget will make super-rich ambani richer than even past 9 months of modi's, only achievement is grabbing land frm poor farmers & to gift it2 rich corporates.budget is simply a please stock-market.poor & middle-class will be burdened wid all sorts taxes.while rich will get all the discounts..freebies

    DisAgree [3] Agree [1] Reply Report Abuse Agree


    Wed, Feb 11 2015

    A budget has little to do with economic growth. It can play around a bit by reducing taxes direct and indirect to stimulate demand but such things have very limited impact. Growth comes from investment in capital both material and human like education and health.

    DisAgree [1] Agree [3] Reply Report Abuse Agree [1]

  • Brijesh.c, Mangaluru

    Wed, Feb 11 2015

    This kind of people never do anything for the development of country they want only their pockets to be full and they fool the people by fake messages

    DisAgree [1] Agree [1] Reply Report Abuse Agree

  • Jossey Saldanha, Mumbai

    Wed, Feb 11 2015

    Please do not get carried away with FAKE promises ...

    DisAgree [7] Agree [9] Reply Report Abuse Agree [1]

  • John S, Mangalore

    Wed, Feb 11 2015

    Why not start with poorest of Poor Adani & Ambani and if anything left behind once they are happy they may decide to cascade it down to to those who strive for 1 meal a day...crony capitalism will never end as long as political parties heavily relying on funding by Business tycoons and media they own. this is a pay back time for politicians ...look Modi took Australian tour for Adani's mining deal.

    DisAgree [4] Agree [8] Reply Report Abuse Agree [2]

  • John S, Mangalore

    Wed, Feb 11 2015

    Yes Growth of Adani's & Ambani's

    DisAgree [5] Agree [10] Reply Report Abuse Agree [1]

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