Bank sets up subsidiary

Karnataka Bank on Tuesday operationalised its wholly owned non-financial subsidiary KBL Services Ltd. having its Registered and Head Office in Bengaluru.

The subsidiary was established as conceptualised under the transformation journey ‘KBL – VIKAAS’ in achieving the bank’s strategic objectives in the long run.

Bank MD and CEO M.S. Mahabaleshwara, who is also non-executive chairman of KBL Services Ltd., said that formation of the first wholly-owned non–financial subsidiary was a significant milestone. The bank is taking a big step in realigning its business strategy with the objectives of improving efficiency and achieving better results and valuation in the long run.

By moving some of the non-financial operations of the bank such as management of alternate banking channels, back-end processing activities, IT project and support, digital capabilities, business sourcing, contact centre management to the subsidiary in a phased manner, Karnataka Bank would have a renewed focus on its core banking business, he said.

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