The Mangalore based Karnataka Bank has planned to achieve an export credit target of 12 percent this financial year. On the bank's ambitious targets, the Managing Director and Chief Executive Officer of the bank P. Jayarama Bhat said that reserve bank has fixed a target of 12 percent of export credit to net bank credit for the banks to achieve. While other players could achieve export credit of only 4 to 4.5 percent, Karnataka bank has already achieved 8 to 8.5 percent export credit target.
Talking about the banks ability to achieve high export credit targets, he said, "With the help of exporters, I am confident that, we will achieve this and reach the target of 12 per cent credit set out by RBI."
To achieve its target, the private sector bank has planned to conduct ‘exporters meet' in places like Ludhiana, Jaipur, Ahmadabad and Kolkata in the coming months, in collaboration with FIEO.
The bank also has 18 bank branches which carry out export credit business and a Central Forex Hub in Mangalore. The hub in Mangalore serves as a center where all export credit related activities where all the export credit operations from around the country are brought together at one place.
It is reported that at present, export credit in banking industry stands at Rs. 2 lakh crores, whereas it has to be increased to Rs.6 lakh crore if he export credit target of 12 percent is to be achieved by the banks.