Karnataka Bank eyeing Rs 2,520-cr export credit by end of this fiscal

Karnataka Bank is targeting to increase its export credit portfolio by around Rs 1,100 crore during 2012-13.

Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said this while delivering the keynote address at the ‘Forex Business Conference' of the bank in Mangalore on Friday.

“Export credit is likely to increase from the present level of Rs 1,454 crore to Rs 2,520 crore by March 2013,” he said.

Speaking to Business Line after the conference, he said the bank is planning to focus on such sectors as readymade garments, engineering goods, gems and jewellery, and pharma for increasing its export credit.

The bank will be actively engaged in customer acquisition from diversified sectors and broad base its forex credit portfolio as a prudent risk-mitigation measure, he said.

‘Silver lining'

Stating that the global economy is not resilient, especially after the Euro Zone crisis, he said the silver lining is that US economy is showing signs of improvement.

In spite of all adversities, there are opportunities to expand export credit, he said.

“In the backdrop of depreciating rupee, dwindling forex reserve, and depressing global scenario, the forex sector deserves special attention by all concerned. Banks have to treat it as national priority and play a proactive role,” he said.

With this background, the bank has planned to expand its export credit portfolio by lending around Rs 1,100 crore during the current financial year, he said.

vinayakaj@thehindu.co.in