Karnataka Bank operationalised its wholly owned non-financial subsidiary – KBL Services Ltd – on Tuesday. With its registered and head office in Bengaluru, this subsidiary is established as conceptualised under the transformation journey of the bank – ‘KBL – Vikaas’ – in achieving bank’s strategic objectives in the long run.
Quoting Mahabaleshwara MS, Managing Director and Chief Executive Officer of Karnataka Bank and non-executive Chairman of KBL Services Ltd, a press release said the formation of the first wholly owned non-financial subsidiary of the bank – KBL Services Ltd – is a significant milestone for Karnataka Bank. With this new entity, Karnataka Bank is taking a step in realigning its business strategy with the objectives of improving efficiency and achieve better results and valuation in the long run, he said.
“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 etc., to the subsidiary in a phased manner, Karnataka Bank will have a renewed focus on its core banking business,” he said.
Speaking at the inauguration of the subsidiary, Mahabaleshwara thanked the board of directors of Karnataka Bank for its vision and guidance in materializing this subsidiary, and acknowledged the hard work put in by the core team of the bank behind this journey.
The Directors of the bank – Rammohan Rao Belle and D Surendra Kumar – were present on the occasion.