The Hindu Business Line : Karnataka Bank Q4 net jumps 26.7 pc

Karnataka Bank Ltd has registered a net profit of Rs 51.01 crore in the fourth quarter of 2005-06 against Rs 40.25 crore in the corresponding period of the previous fiscal, recording a growth of 26.73 per cent.

The bank reported a net profit of Rs 176.03 crore during 2005-06 against Rs 147.15 crore for 2004-05, registering a growth of 19.6 per cent.

Mr Anantakrishna, Chairman and Chief Executive Officer of the bank, said in a press release said here on Thursday that the bank earned increased net profit due to lesser provisioning for NPAs and lesser provisioning for depreciation on investments.

The net interest income rose from Rs 316.89 crore in 2004-05 to Rs 365.97 crore in the last fiscal, registering a growth rate of 15.5 per cent. The release attributed this to good growth in advances, increase in interest spread and good recoveries under NPA.

The bank has proposed a dividend of 30 per cent on equity shares.

The business turnover crossed Rs 21,000 crore in the last fiscal. The deposits grew by 22.2 per cent to touch Rs 13,243 crore and advances grew by 24 per cent to reach Rs 7,792 crore.

During the current fiscal, Karnataka Bank is planning to achieve a total business turnover of Rs 25,000 crore, comprising deposits of Rs 15,000 crore.

The net NPA of the bank declined to 1.18 per cent (2.29 per cent) during 2005-06.

The capital adequacy ratio stands at 11.78 per cent against the RBI stipulation of 9 per cent. The release said that this is after taking into account the market risk as per Basel II accord. Its net owned funds stands at Rs 1,150 crore.

Expansion

The bank, which has 395 branches, has plans to increase the number to 415 during the fiscal. Branches will be opened in Guwahati, Siliguri, Kolkatta, Allahabad, Agra, Kanpur, Bilaspur, Bhopal, Jodhpur and Panipath during the year. Almost 95 per cent of the bank's business is covered under core banking solution (CBS). The bank has networked 319 offices under CBS.

The number of ATMs will be increased to 125 during the year, the release added.

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