Thursday, September 6, 2012

BANKS ON THE MOVE:KVB

Ranked amongst the world’s top 1000 banks in 2009 by The Banker, London, Karur Vysya Bank is perhaps the least written about banks in India. But with an obscenely mammoth Rs.300 billion plus business being churned out an NPA ratio which is amongst the lowest across India, the bank can just not be ignored. B&E investigates what’s up with the bank?

But with greater market presence, would come the bigger danger of a hostile takeover. When the economic crash occurred, apart from the immediate biggies, those were the small banks that first collapsed. Even in India, the banking industry has seen a score of such small bank mergers/takeovers in the past few years. Kuppuswamy has dismissed the issue in the past too, depending more on the cash-richness and high profit figures of the bank to ensure the stock price stays unreachable high. KVB’s stock performance, for example, beat the BSE Bankex by close to an obnoxious 300% difference in the past year.

But the question always would remain on how they’d be able to put into action BCG’s recommendations in toto. Their past is ostentatiously well endowed; but we’ll be tracking them closely in the near future too, and would be counting the battle hits taken by and gifted to this regional giant. For now, we present the exclusive interview of the man who runs the show at KVB, P. T. Kuppuswamy, Group Chairman...

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Source : IIPM Editorial, 2012.
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