Karnataka Bank Limited, which is an old-generation private sector bank (NSE: KTKBANK) based in Mangalore, is partnering with Financial Technology (FinTech) firms as well as adopting end-to-end digital services to become a digital banking company by its centennial year in the Fiscal Year 2024 (FY24). This information has been notified by Mahabaleshwara M.S, who serves as Karnataka Bank Limited’s Managing Director (MD) as well as Chief Executive Officer (CEO).
According to the CEO, the collaborations with FinTech firms for corporate, retail, and Micro, Small and Medium Enterprise (MSME) loan underwriting have lowered the operational costs and increased proficiency. By March 2024, the private sector bank hopes to digitize around 80% of its retail loans, which is as much as INR 5 Crores.
Mahabaleshwara M.S further stated that they hope to establish themselves as a digital banking company by the beginning of their new century, as the year they turn 100 is coming up. In addition to credit, they are aiming for end-to-end digital services in all aspects of back-office and banking operations. While the quality requirements are followed, and productivity is improved when bringing new customers on deck, the firm’s risk management segment will continue to conduct assurance checks.
Karnataka Bank Limited is seeking to launch its business operations in the Gulf region and get into the wealth management industry as part of its preparations for the centennial year. Beginning on the 1st of October, the South Indian bank will establish the Analytical Center Of Excellence or ACoE, in collaboration with the London-based professional services partnership MNC, Ernst & Young Global Limited (EY), to leverage digital proficiency to carry out decision-making. Karnataka Bank Limited’s current balance sheet, which is at INR 94,541 Crores, is expected to rise by 10% to 15%.
The shareholders of Karnataka Bank Limited declined a motion to raise around INR 1,000 crore this year via a Qualified Institutional Placement (QIP) during the bank’s annual general meeting in August.
IiAS, the leading corporate governance and proxy advisory firm in India, estimates that to raise INR 1,000 Crores, Karnataka Bank Limited has to issue 135.7 million shares, diluting the dilated capital base by about 30.4%. According to the CEO, the bank would speak with investors to learn about their worries.