Tough days ahead for banks: Karnataka Bank MD Jayaram Bhat

Tough days ahead for banks: Karnataka Bank MD Jayaram Bhat

Mangalore Today News Network

Mangalore, Aug 9, 2011 : Speaking at the Regional Heads’ Review Conference held at the Karnataka Bank Ltd. head office on Aug 8 to review the performance of the 10 regions during the financial quarter that came to an end in June 2011, P. Jayaram Bhat, the managing director of the bank, said that banks are now facing a tough time because of inflation and tight liquidity.

 

 

 

Further speaking on the challenges faced by banks, he said that the Reserve Bank of India has taken a number of anti-inflationary measures, owing to which interest rates are expected to soar, thus making it difficult for banks to expand their credit portfolio. The rates on term deposits will also have to be hiked, he added.

He also said that the rising costs of loans will affect their quality, leading to mounting NPAs, owing to which attention needs to be paid to control rising NPAs. If the NPAs rise, banks will not be able to make a profit, he added.

He urged the regional heads of the bank to guide the branches under their jurisdiction effectively, playing the role of friend, philosopher, and guide. One has to be fit enough to deal with competition, he added.

General Manager Shri P. Jairama Hande delivered the welcome address and spoke about the performance of the bank during the first quarter. General Managers N. Upendra Prabhu, Sarvashri K. H. Shivaswamy, B. Ashok Hegde, and M. V. C. S. Karanth also spoke on the occasion.

Deputy General Manager K. G. Ramesh Rao presented relevant facts and figures for the financial quarter that ended on June 2011.

Shri N. R. Ravishankar, the assistant general manager, proposed the vote of thanks. The ten regional heads and various executive officers were present at the conference