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Wednesday, May 22, 2002

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Lord Krishna Bank net up at Rs 19.71 cr

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KOCHI, May 21

LORD Krishna Bank which has achieved a 294 per cent growth in net profit during the last fiscal has set a business target of Rs 4,000 crore with an operating profit target of Rs 100 crore and a net profit of Rs 60 crore for the current financial year.

The bank's net profit in 2001-02 had increased to Rs 19.71 crore from Rs 5 crore in the previous year, according to Mr A.K. Puri, Director.

Operating profits had shot up to 233 per cent to Rs 50.5 crore.

As a long-term corporate goal the bank is eying a business level of Rs 10,000 crore by the end of 2004, he said.

"Our focus will be to bring state-of-the-art services and convenience banking to the customers. Towards this we will aggressively expand our branch networks in North and Western India.

"We plan to add 22 more branches across India to extend our reach extensively in North India, as we are a well established bank in parts of South India,'' he said.

These branches would further strengthen its existing network of 94 branches spread across 10 States, he said.

"We will offer customers the convenience of anytime, anywhere banking by becoming the most technologically advanced bank in India.

"Our strategy would be to attract large corporate and PSU accounts to increase the business volume and focus on retail lending and low cost deposits to expand retail customer base from the current 2.5 lakhs to 6.5 lakhs,'' he said.

He said that the bank planned to further strengthen its presence in Kerala by upgrading and refurbishing the 67 branches and providing additional services like ATM facility.

"For the large NRI customer base, especially in West Asia, the bank plans to open representative offices in UAE,'' he said.

During the last fiscal the bank had business worth Rs 2,500 crore and with 294 per cent growth in net profit, "it is well on its way towards achieving the status of a national bank''.

The board of directors, Mr Puri said, had recommended an enhanced dividend of 20 per cent for 2001-02 as compared to 10 per cent the previous year.

Deposits stood at Rs 1,502.38 crore and advances at Rs 846.5 crore last fiscal registering an increase of 22 per cent and 41 per cent respectively from 2000-01.

The total income of the bank in the last financial year stood at Rs 219.4 crore while its earnings per share also increased to Rs 7.17.

During the year, the bank's rights issue was fully subscribed and its net worth had gone up to Rs 108.47 crore, Mr Puri added.

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