The Hindu Business Line : Lord Krishna Bank third quarter net profit rises to Rs 22.1 cr

Despite the declining interest rate scenario, the net interest income as a percentage of average working funds increased from 1.04 per cent to 1.11 per cent.

Addressing a press conference here, Mr R.M. Nayak, Managing Director, said that even as the spreads have been thinning out, the efficiency level of the bank had continued to grow and it was able to post better results. The other income, mainly from treasury operations, had also shown a healthy growth of 11.47 per cent over the corresponding period of last year.

Its business volumes grew beyond the Rs 2,500-crore mark. Its net worth grew from Rs 119.28 crore as on March 2003 to 143.35 crore in December 2003. The bank was able to record a handsome capital adequacy ratio of 15.75 per cent, as against the RBI stipulated norm of 9 per cent.

Despite the newly announced 90-day norm for categorising NPA, the bank was able to maintain its NPA level at 6.3 per cent, Mr Nayak said. The bank was optimistic that it could be contained at five per cent levels by March 2004. It also planned to notch up a 30 per cent growth in both deposits and advances during the current year.

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Lord Krishna Bank third quarter net profit rises to Rs 22.1 cr