Karnataka Bank CEO and MD Raghavenendra Bhat
Karnataka Bank will focus on the increasing credit deposit (CD) ratio up to 80 percent in March 2027, according to Raghavenendra Bhat, director and chief executive director of the bank.
In response to questions from shareholders in the 101st annual General Meeting (AGM) on Tuesday, he said that there is room for improvement in the CD ratio, which is currently at 70 percent plus.
He states that the target must grow the CD ratio to 75 percent in the current year itself, he said: “In the future we must have 80 percent of the CD ratio, probably halfway through next year or by March 2027.”
Interest income
Bhat said that the bank took a lot of initiative in this respect and said that an improvement in the CD ratio would improve all other associated ratios – whether it would be interest, net interest rate, return on assets and returns on equity.
In her efforts to grow progress, the bank will restart retainting process centers (RLPCs). The bank previously had RLPCs in four regions. Three more were added after him as MD and CEO in July, he said.
These seven regions have already started to contribute well, he said, adding, RLPCs will be extended to all 15 regions of the bank.
On the assets side, the bank is focused on growing its gold loan and retail, Agri, MSME (RAM) portfolios. With regard to the liability side, the bank has received a strong focus to grow the basis of the current account savings account (CASA), he said.
He explains that non-performing assets (NPA) are very under control, he said the bank has a system to monitor assets. The head office has a credit monitoring cell and the regional offices have teams to control NPAs.
Compliance issues
In response to the questions from some shareholders about investments in information technology (IT), he said that many investments have been dealt with in the IT department in the last two years, and it is mainly for improving product and process efficiency and for compliance issues. He hoped that these investments would bring benefits from the current year.
On the extension plans of branches, he said that Karnataka Bank now has 955 branches. The bank also has plans for opening 30 branches in the current year. Of them, four branches have already been opened, Bhat added.
P Pradep Kumar, chairman of the bank, carried out the AGM procedure.
Published on September 23, 2025
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