CHANGING WITH THE TIMES

The century-old Karur Vysya Bank is embracing new technologies like AI to enhance customer experience while continuing its strong financial growth

- TEENA JAIN KAUSHAL

SET UP IN 1916, The Karur Vysya Bank (KVB) has a longstanding heritage of ethical banking practices. It has remained profitable every year since its inception, demonstrating robust financial stability and consistency. The founders had incorporated certain clauses like preventing directors from taking loans from the bank even before they were incorporated in law. Since then, the bank has maintained a culture of ethical responsibility. This vision laid the groundwork for the bank.

M.A. Venkatarama Chettiar and Athi Krishna Chettiar founded KVB 107 years ago to support traders and farmers who had suffered severely during the First World War. Starting with a seed capital of ₹1 lakh, it has now grown into a full-fledged commercial bank offering a wide range of services.

During its long journey, the bank has successfully navigated many challenges. “Earlier when there was an infra bull, several decisions were deliberated upon regarding diversification into corporate banking. At one point, corporate banking was more than 35% of the overall book. During this period, the bank’s gross non-performing assets (NPAs) rose to 9%. Despite the challenges that came with changes in government policies, stalled projects, and other issues, the bank managed to stay afloat and mitigate the impact better than bigger banks,” says B. Ramesh Babu, KVB’s MD and CEO.