The Hindu Business Line : Lord Krishna Bank Q1 net at Rs 7.6 cr

LORD Krishna Bank has posted a net profit of Rs 7.66 crore during the first quarter ended June 2005. The bank's operating profit has grown to Rs 10.16 crore (Rs 2.9 crore).

Mr V.K. Gupta, Deputy Managing Director, said the setback on the bottom line of last year had been reversed and that the bank had taken adequate corrective measures. It had posted a net loss of Rs 24.41 crore during last year.

Profit from operations, other than treasury, increased to Rs 26.48 crore (Rs 6.54 crore) during last year, though the upward movement of yield on Government securities eroded the bottom line.

To strengthen the capital base, the authorised capital base of the bank has been scaled up to Rs 300 crore.

The cost of deposit continued to show a declining trend for the bank and has fallen to 6.35 per cent (7.41 per cent). Net NPA stood reduced to 4.22 per cent (6.05 per cent) and the bank has targeted to attain zero net NPA position by 2007, a release from the bank said.

Despite the declining interest rate scenario, net interest income as a percentage of average working funds increased to 2.4 per cent from 1.71 per cent. Net worth of the bank went up to Rs 160.12 crore (Rs 139.24 crore).

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Lord Krishna Bank Q1 net at Rs 7.6 cr