Karnataka Bank

Karnataka Bank

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Karnataka Bank Limited is a private sector banking institution based in the town of Mangalore
Mangalore
Mangalore is the chief port city of the Indian state of Karnataka. It is located about west of the state capital, Bangalore. Mangalore lies between the Arabian Sea and the Western Ghat mountain ranges, and is the administrative headquarters of the Dakshina Kannada district in south western...

 in Karnataka
Karnataka
Karnataka , the land of the Kannadigas, is a state in South West India. It was created on 1 November 1956, with the passing of the States Reorganisation Act and this day is annually celebrated as Karnataka Rajyotsava...

, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

. The Reserve Bank of India
Reserve Bank of India
The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...

 has designated Karnataka Bank as an 'A1+'-class scheduled commercial bank.

The bank now has a national presence with a network of some 479 branches across 20 states and 2 Union Territories. It has over 5844 employees and 4.84 million customers, including farmers and artisans in villages and small towns throughout the country. Its shares are entirely privately-owned by some 86,868 shareholders.

Current position


For the year ended 31 March 2011, the total interest earned was 2370.84 crores. The total income for the bank was 2662.60 crores and the expenditure, 2307.31 crores, thereby yielding a profit of 204.61 crores.

The Karnataka Bank has been striving to keep pace with advances in banking technology by adopting Core banking
Core banking
Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices.- Core banking :...

 and Internet banking, and establishing its "MoneyPlant" Automated Teller Machine
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...

 system.

Bank has bagged the Best Bank Award for "Managing IT Risk" under small bank category for the year 2010-11, instituted by Institute for Development and Research in Banking Technology (IDRBT). Shri Anand Sinha, Deputy Governor,Reserve Bank of India and Chairman, IDRBT presented the award to Shri P. Jayarama Bhat, Managing Director at a function held in Hyderabad on 04.08.2011 in the presence of Shri B. Sambamurthy, Director, IDRBT.

In August 2008, Karnataka Bank received the Sun and NDTV Green IT Award. Sun Microsystems
Sun Microsystems
Sun Microsystems, Inc. was a company that sold :computers, computer components, :computer software, and :information technology services. Sun was founded on February 24, 1982...

 and NDTV
NDTV
NDTV is an Indian commercial broadcasting television network founded in 1988. It was founded by Prannoy Roy, an eminent journalist and current chairman and director of NDTV Group. NDTV currently has more than 1,000 employees producing news from over twenty locations in India...

 gave the award to Karnataka Bank in recognition of the bank's "green policies" and use of earth-friendly technology such as solar power
Solar power
Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar radiation, along with secondary solar-powered resources such as wind and wave power, hydroelectricity and biomass, account for most of the available...

.

History


The Karnataka Bank was incorporated on February 18, 1924, as The Karnataka Bank Limited and commenced business on May 23, 1924. Its founders established it at Mangalore
Mangalore
Mangalore is the chief port city of the Indian state of Karnataka. It is located about west of the state capital, Bangalore. Mangalore lies between the Arabian Sea and the Western Ghat mountain ranges, and is the administrative headquarters of the Dakshina Kannada district in south western...

, a coastal town in the Dakshina Kannada
Dakshina Kannada
- Geography :The district geography consists of sea shore in the west and Western Ghats in the east. The major rivers are Netravathi, Kumaradhara, Phalguni, Shambhavi, Nandini or Pavanje and Payaswini which all join Arabian sea. Vast areas of evergreen forests which once covered this district, have...

 district of Madras Presidency
Madras Presidency
The Madras Presidency , officially the Presidency of Fort St. George and also known as Madras Province, was an administrative subdivision of British India...

. Among the founders, who created the bank to serve the South Kanara region, was B. R. Vysaray Achar. Another important personality associated with the bank was K. S. N. Adiga, who served as Chairman from 1958 to 1979.
  • 1960: Karnataka Bank acquired the Sringeri Sharada Bank, which had been established in 1942 and which had four branches.
  • 1964: Karnataka Bank took over the assets and liabilities of the Chitradurga Bank (also known as Chitladurg Bank), which had been established in 1868 in Mysore State
    Mysore State
    The Kingdom of Mysore was one of the three largest princely states within the erstwhile British Empire of India. Upon India gaining its independence in 1947, the Maharaja of Mysore merged his realm with the Union of India...

     and was the oldest bank in Mysore.
  • 1966: Karnataka Bank took over the assets and liabilities of the Bank of Karnataka, in Hubli. Bank of Karnataka had been established in 1946 and had opened one branch in Belgaum
    Belgaum
    Belgaum is a city and a municipal corporation in Belgaum district in the state of Karnataka, India. It is the fourth largest city of the state of Karnataka, the first three being Bangalore, Mysore, Hubli-Dharwad....

     in 1947. At the time of the acquisition, Bank of Karnataka had 13 branches.


In the year 2000, Karnataka Bank signed a memorandum of understanding
Memorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...

 with Infosys Technologies to develop a core-banking solution called FINACLE
Finacle
Finacle universal banking products are designed to address the core banking, e-banking, Islamic banking, treasury, wealth management and CRM requirements of retail, corporate and universal banks. It is developed by Infosys, and is one of the major players in the arena of core banking in Indian and...

. Over 221 branches were networked up to March 31, 2004. The main motto of this programme is "Anytime/Anywhere banking". In 2002, the bank concluded a pact with Corporation Bank
Corporation Bank
Corporation Bank is an India-based banking company based in Mangalore, India. The bank was founded with an initial capital of Rs. 5000 , and first day’s canvassed resources of less than one USD 1, has currently 12,724 full time employees, and operates from several branches in India.The Bank is a...

 for sharing its ATMs. A year later, the bank introduced the Moneyplant card that allows customers to withdraw money from any of their Karnataka bank accounts.

In September 2003, the bank shifted its head office from Kodialbail
Kodialbail
Kodialbail is a locality in the city of Mangalore in Karnataka state of India. It is located about 2 km to the north of Hampankatta. It is home to some of the prestigious educational institutes of Mangalore and the Mangalore Stock Exchange....

 to Kankanady.

List of Chairmen

  • B. R. Vyasaraya Achar 1924-1958
  • K. Sooryanarayana Adiga (November 23, 1958-February 15, 1979)
  • K. N. Basri (February 15, 1979-February 19, 1980)
  • P. Raghuram (June 16, 1980-June 15, 1985)
  • P. Sundar Rao (September 11, 1985-September 10,1989)
  • H. M. Rama Rao (January 11, 1990-January 11, 1993)
  • U. V. Bhat (June 28, 1993-June 27, 1995)
  • M. S. Krishna Bhat (July 12, 1995-July 11, 2000)
  • Ananthakrishna (July 13, 2000-July 11, 2009)
  • Jayram Bhat (For next three years from July 12, 2009)

Services


In August 2008, the Karnataka Bank introduced Quick Remit, a facility to make money transfer easy for Non-Resident Indians living in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

, USA and the UK. The bank also runs a 24-hour internet banking service called Moneyclick.

Karnataka Bank also offers multi-branch banking, deposit schemes as Abhyudaya cash certificate, fixed deposits, ready money deposit, Soulabhya deposit, cumulative deposit, Platinum lakhpathi, insurance linked savings bank deposit, K-Flexi deposit, resident foreign currency (domestic) account, NRI services, Senior Citizens Deposit Scheme and loan schemes as Vidyanidhi education loan scheme, Apna ghar home loans, car finance scheme, Varthak loans, Easy ride, Scheme for salaried persons, Udyog mithra, Niveshan loans, Krishi card, K-Power, Lease ‘n’ Encash, Suvarna Nidhi, InstaCash and VahanaMitra.