Karur Vysya Bank
Sankar Balabhadrapatruni takes on the role of Executive Director at Karur Vysya Bank.
Karur Vysya Bank, a leading private sector bank in India, has appointed Sankar Balabhadrapatruni as its new Executive Director. Balabhadrapatruni, a chartered accountant with significant experience in the banking and financial services sector, will be responsible for overseeing the bank’s day-to-day operations and implementing strategic initiatives to drive growth and profitability.
Balabhadrapatruni’s appointment is seen as a strategic move by the bank to strengthen its leadership team and leverage his expertise in identifying opportunities to grow the bank’s business. He has an extensive background in the banking and financial services sector, having worked with several leading institutions, including Axis Bank, Axis Capital, and Centrum Direct.
Karur Vysya Bank’s Chairman, Suresh Sembi, welcomed Balabhadrapatruni to the bank’s leadership team, highlighting his impressive credentials and expertise in the banking and financial services sector. “We are thrilled to have Sankar on board and look forward to benefiting from his wealth of experience and expertise,” Sembi said.
Balabhadrapatruni’s appointment is seen as a significant boost to the bank’s efforts to expand its reach and diversify its business. As Executive Director, he will be responsible for driving key strategic initiatives, including business development, risk management, and talent acquisition and retention. His experience in the banking and financial services sector will be invaluable in helping the bank navigate the challenging regulatory environment and stay ahead of the competition.
Karur Vysya Bank has been focused on expanding its presence across India and targeting high-growth segments, such as retail banking, corporate banking, and international banking. Its recent appointment of Sankar Balabhadrapatruni is seen as a strategic move to further accelerate growth and profitability.
Under his leadership, Karur Vysya Bank is likely to leverage Balabhadrapatruni’s extensive network and relationships to identify new business opportunities, build partnerships, and attract top talent. His appointment demonstrates the bank’s commitment to building a strong leadership team, which will be critical in driving the bank’s growth and success in the years to come.
In summary, Karur Vysya Bank’s appointment of Sankar Balabhadrapatruni as Executive Director is a significant move to strengthen its leadership team and drive growth and profitability. With his extensive experience in the banking and financial services sector, Balabhadrapatruni is well-positioned to contribute to the bank’s vision of becoming a leading player in the Indian banking industry.
RBI slaps fines on Federal Bank and Karur Vysya Bank for non-compliance with regulatory norms.
The Reserve Bank of India (RBI) has imposed monetary penalties on Federal Bank Ltd and Karur Vysya Bank Ltd for non-compliance with regulatory guidelines. Federal Bank has been fined ₹27.30 lakh, while Karur Vysya Bank faces a penalty of ₹8.30 lakh. This action follows RBI’s routine inspections, which identified violations in account management and credit delivery systems.
Federal Bank was penalized for opening savings deposit accounts in the names of entities that were not eligible, violating RBI’s directives on interest rates on deposits. This indicates lapses in due diligence and adherence to RBI’s deposit-related norms. Karur Vysya Bank, on the other hand, was penalized for failing to ensure that the outstanding loan amounts of some borrowers met the required percentage of the sanctioned working capital limit, breaching credit management rules.
This is not the first time RBI has taken action against these banks. Federal Bank was previously fined ₹30 lakh in November 2023 for violating Know Your Customer (KYC) norms, while Karur Vysya Bank was penalized ₹30 lakh in March 2023 for failing to report certain accounts as fraud within the required timeframe.
The RBI has emphasized that these penalties are based solely on regulatory lapses and do not affect customer transactions or agreements. The central bank continues to enforce strict compliance measures to ensure financial discipline among banks. By imposing penalties on non-compliant institutions, RBI reinforces its commitment to maintaining transparency and accountability in the banking sector. The actions demonstrate RBI’s firm stance on maintaining strict banking compliance, highlighting the importance of regulatory governance and risk management in the banking industry.
Uco Bank sets new rates with a 5 basis points hike in its one-year MCLR, starting Monday.
State-owned Uco Bank has announced a hike in its one-year marginal cost-based lending rate (MCLR) by 5 basis points, effective from Monday. This move comes despite the Reserve Bank of India’s (RBI) decision to reduce its policy repo rate by 25 basis points, a move that had been anticipated. However, the bank has simultaneously reduced its repo-linked lending rate, in line with the RBI’s decision. This decision to reduce the repo-linked lending rate is expected to have a quicker impact on customers, as repo-linked benchmark rates are more immediately transmitted to loan rates.
According to the RBI’s deputy governor, Swaminathan J, the transmission of regulatory rate cuts is quicker for repo-linked benchmark rates, as they account for 40% of the loan book. MCLR-linked rates, on the other hand, depend on a bank’s costs and typically take longer to affect loan rates. It takes around two quarters for the effect to play out, as the reset periods are mostly six months.
Uco Bank has also raised its treasury-bill linked benchmark rates by 5-10 basis points. The bank’s decision to raise its MCLR and treasury-bill linked benchmark rates is a response to increased costs and risks in the economy. Despite this, the reduction in the repo-linked lending rate is expected to provide some relief to customers.
Other banks, such as Bank of India, Indian Bank, and Karur Vysya Bank, have also reduced their repo-rate linked loans immediately after the RBI’s policy announcement. This suggests that banks are trying to pass on the benefits of the RBI’s rate cut to their customers, at least partially.
RBI imposes hefty fine of Rs35.60 lakh on Federal Bank and Karur Vysya Bank for failing to comply with regulatory directions
The Reserve Bank of India (RBI) has imposed penalties on two private sector banks, Federal Bank and Karur Vysya Bank, for non-compliance with its directions. According to the RBI’s circular, Federal Bank has been slapped with a penalty of Rs25.20 lakh, while Karur Vysya Bank has been imposed a fine of Rs10.40 lakh.
The penalty was imposed on both banks for failing to adhere to the RBI’s guidelines on risk assessment, customer due diligence, and other aspects of customer relationship management. The RBI conducted an inspection of the two banks and found that they had violated various provisions of the RBI’s directions, including the Banking Regulation Act, 1949.
Specifically, the RBI’s inspection found that Federal Bank had failed to assess the risk involved in certain loan accounts and had not maintained proper records of loan applications. Additionally, the bank had not followed the RBI’s guidelines on credit reporting and had not properly reported credit information to credit information companies.
Karur Vysya Bank, on the other hand, had failed to implement proper controls to ensure timely submission of periodic reports to the RBI and had not maintained adequate records of cash transactions. The bank had also failed to implement a robust audit framework to identify and report errors in customer account opening and transactions.
The RBI has asked both banks to improve their risk assessment and management processes, as well as their compliance with RBI’s guidelines on customer relationship management. The banks have also been asked to ensure that their audit and internal control mechanisms are robust and effective.
This development highlights the importance of banks adhering to RBI’s guidelines and directions, as well as the need for them to implement robust risk assessment and management processes. It also underscores the importance of regular audits and internal control mechanisms to identify and report errors and irregularities.
Overall, the imposition of penalties on Federal Bank and Karur Vysya Bank serves as a reminder to banks to adhere to RBI’s guidelines and to prioritize risk assessment and management in their operations. It also demonstrates the RBI’s commitment to ensuring that banks maintain high standards of governance, risk management, and compliance with regulations.
A Chennai consumer court has ordered an insurance firm and a bank to jointly pay a compensation of Rs 51 lakh to the widow of a deceased policyholder, holding them liable for defaulting on their commitments.
The Chennai North District Consumer Disputes Redressal Commission has ordered Niva Bupa Health Insurance and Karur Vysya Bank to pay a total of Rs 51,00,000 to a widow and her son, citing deficiency in services. The complainants, Santosh Sudhersan Sharma and her son Sandeepan Sudhersan Sharma, from Ambattur, had filed a complaint after being denied a insurance claim.
In 2021, Sudhershan Pohloram Sharma, Sandeepan’s father, had taken a housing loan of Rs 50,47,000 from Karur Vysya Bank, which included a critical illness cover accidental cover policy from Niva Bupa Health Insurance, purchased through the bank. Despite paying a premium of Rs 2,99,956, no one from the insurance company explained the policy terms to Sudhershan.
Sudhershan died on January 25, 2022, due to acute coronary syndrome, which Sandeepan and Santosh claimed was covered under the critical illness benefits. However, Niva Bupa Health Insurance denied their claim, citing that the cause of death did not fall under critical illness benefits.
The consumer commission held both Niva Bupa Health Insurance and Karur Vysya Bank responsible for deficiency in services and directed them to pay the complainants the base sum insured of Rs 50,00,000 with nine per cent interest per annum from the date of death to the date of payment. They were also directed to pay Rs 1,00,000 towards compensation for deficiency in service, mental agony, pain and sufferings and Rs 5,000 towards litigation cost.
The complainants had been initially led to believe that the insurance policy would cover the housing loan, but after Sudhershan’s death, they were left with an outstanding amount and had to make payments themselves. The commission noted that Niva Bupa Health Insurance deliberately denied the claim and caused the complainants unnecessary stress and suffering.
Karur Vysya Bank Limited Launches New Branches on January 24, 2025 at 7:30 am EST.
The Karur Vysya Bank Limited has announced the opening of five new branches across various locations. The branches are scheduled to be inaugurated on January 27, 2025. Here are the details of the new branches:
* Branch Serial Number: 867, located at Malumichampatti, Coimbatore, with an address at SF No.340/1B, Indra Nagar, Pollachi Main Road, Malumichampatti, Coimbatore – 641 050.
* Branch Serial Number: 868, located at Makkinampatti, Pollachi, with an address at MCET College Campus, S.F. No 11, Udumalai Road, Makkinampatti Post, Pollachi – 642003.
* Branch Serial Number: 869, located at Palamedu, Madurai, with an address at D.No.12/3/75, Bhruntha Nagar, Palamedu, Madurai District – 625 503.
* Branch Serial Number: 870, located at Kaveripattinam, Krishnagiri, with an address at No.67, Govinda Chetty Street, Agaram Road, Kaveripattinam, Krishnagiri District – 635 112.
All these branches will start operations on January 27, 2025, providing banking services to the local communities. The bank has not provided any further information about the services that will be offered at these branches or the timing of their operations. However, customers can expect to have access to a range of banking products and services, including savings and current accounts, loans, credit cards, and more. The opening of these new branches is likely to benefit the local population by providing convenient access to banking services and contributing to the overall economic development of the region.
Karur Vysya Bank Records 20.39% Y-O-Y Growth in Net Profit, Reducing to Rs 496 Crore for Q3.
Karur Vysya Bank has announced its financial results for the quarter ended December 31, 2022. According to the bank’s financial report, the Q3 net profit has registered a significant growth of 20.39% at Rs 496 crore, compared to the same quarter last year. This impressive growth is a testament to the bank’s efforts to improve its performance and build upon its strengths.
The bank’s total income for the quarter has increased by 14.54% to Rs 2,444 crore, from Rs 2,134 crore in the same quarter last year. This growth is attributed to a 15.48% increase in net interest income to Rs 1,593 crore and a 12.32% rise in operating profit to Rs 621 crore.
Karur Vysya Bank’s net interest margin (NIM) has improved to 3.32%, up from 3.23% in the same quarter last year, indicating the bank’s ability to generate profits from its lending activities. The bank’s asset quality has also shown improvement, with gross non-performing assets (NPA) ratio decreasing to 6.31% from 7.12% in the same quarter last year.
The bank’s capital adequacy ratio (CAR) stands at 14.97%, well above the regulatory requirement of 10.25%. The bank’s profitability has been driven by a combination of factors, including its strong loan growth, improvement in NIM, and effective cost management.
In terms of growth, the bank’s advances increased by 12.89% to Rs 62,351 crore, while its deposits grew by 14.63% to Rs 64,935 crore. The bank’s fee income has also seen a significant increase of 25.64% to Rs 131 crore, driven by higher earnings from its services and fees.
Overall, Karur Vysya Bank’s Q3 financial performance is impressive, reflecting the bank’s commitment to sustainability, growth, and profitability. The bank’s strong financials, robust asset quality, and effective cost management position it well to continue delivering value to its stakeholders in the long term.
Karur Vysya Bank’s Q3 performance soars: Net profit surges 20% to 496 crores.
Karur Vysya Bank, a private sector institution, has recently announced a solid financial performance, reporting a substantial 20.4% year-on-year increase in its net profit at Rs 496 crore for the December 2024 quarter. This represents an improvement over Rs 412 crore in the equivalent period of last year. At the same time, the lender’s net interest margin decreased minimally to 4.03% compared with 4.32% reported in the related quarter of last year.
Revenue-wise, non-interest income posted a rise by 4%, while operating prof