The Hindu Business Line : Karnataka Bank Q2 net up at Rs 59.61 cr

Karnataka Bank Ltd recorded a net profit of Rs 59.61 crore in the second quarter of the current financial year as against Rs 41.81 crore in the corresponding period of the previous year, registering a growth of 42.57 per cent.

Speaking to Business Line here, its Chairman and Chief Executive Officer, Mr Anantakrishna, attributed two main reasons for the growth. "First one is that requirement for depreciation in securities was not there. The second factor is that net interest income has increased compared to the last year. These two factors have contributed to the increase in the net profit," he said. During the second quarter of 2006-07, the bank recorded a net interest income of Rs 90.64 crore (Rs 76.36 crore), and other income of Rs 48.70 crore (Rs 45.17 crore). The total income stood at Rs 344.01 crore (Rs 285.25 crore)..

The bank recorded an operating profit of Rs 74.08 crore (Rs 65.31 crore) during the period.

On the NPA level, he said the recovery and controlling of the slippage have helped the bank in bringing down NPAs to 1.48 per cent (1.73 per cent) during the quarter.

The capital adequacy ratio stood at 12.25 per cent (13.71 per cent).To a query on the growth in deposits and advances, he said, "Compared to September 2005, deposits have increased by Rs 2,100 crore and the advances by Rs 1,350 crore." Advances have seen a rise in SME, retail and to a small extent in corporate sectors.

In the case of deposits, low-cost and term deposits had seen a growth, he said.

On Friday, the scrip up at Rs 122.05 on the Bombay Stock Exchange, against the previous closing of Rs 120.15.

H1 RESULTS

A bank release said here that the net profit for the half-year ended September 2006 stood at Rs 96.39 crore (Rs 83.50 crore), registering a growth of 15.44 per cent.

The gross income rose to Rs 674.64 crore (Rs 573.63 crore). The operating surplus increased to Rs 162.25 crore (Rs 153.25 crore). Net interest income increased to Rs 185.96 crore (Rs 167.13 crore). The release said that the bank, which is eyeing a business turnover of Rs 25,000 crore for the current fiscal, plans to double its business in three years. The total turnover as of September 2006 was Rs 21,129 crore (Rs 18,309 crore).

Out of the 401 branches of the bank, 337 have already been brought under the core banking solution, covering more than 96 per cent of its business.

MORE BRANCHES

Towards strengthening its presence in northern and north-eastern India, the bank plans to open branches at Agra, Kanpur, Allahabad, Panipath, Bilaspur, Jodhpur and Siliguri before December this year, the release added.

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Karnataka Bank Q2 net up at Rs 59.61 cr

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