Days ahead challenging for banking sector – Karnataka Bank MD Jayarama Bhat

Mangalore Today News Network

Mangalore, Nov 10, 2011 : Karnataka Bank held its regional heads’ review conference in its head office on Tuesday to review the performance of its 10 regional offices at the end of the fiscal quarter. Speaking about the threats of NPA increase to the banking sector, P. Jayarama Bhat, the MD of Karnataka Bank, said that NPA problems can be solved only by properly identifying parties and assessing credit proposals.

 

Stating that regional heads have an important role to play, he urged them to understand this and execute their duties and responsibilities accordingly. Advising them to control NPA, he also urged them to focus attention on CASA deposits.

Speaking about the challenges generated by the recent hikes in repo and reverse repo rates by the Reserve Bank of India (RBI), he said that banks need to be cautious. While the deregulation of SB deposit rates will please investors, borrowers will have to be burdened with extra interest rates owing to the recent rate hikes by the RBI, he added.

Delivering the welcome address, GM P. Jairama Hande spoke about the recent implications of the monetary police and the various macro developments. He also spoke about the performance of the bank during the second quarter.

GMs K. H. Shivaswamy Aithal, N. Upendra Prabhu, M. V. C. S. Karanth, and B. Ashok Hegde also spoke on this occasion.