The Hindu Business Line : `Repo rate hike to hit bank profits'

The hike in repo rate and higher provisioning will pinch the bottomlines of banks in the fourth quarter, according to Mr Anantakrishna, Chairman and Chief Executive Officer of Karnataka Bank Ltd.

"It is against this background, we should aim at increasing retail deposits and more specifically current accounts and savings accounts (CASA)," he said, adding that the increase in CASA and fee-based income will bring in considerable relief to banks.

A bank release said here that Mr Anantakrishna was reviewing the performance of the bank for the period ended December 2006, at the regional heads' conference in Mangalore. He called upon the regional heads to chart out a suitable course of action to increase the CASA. Mr P. Jayarama Bhat, Chief General Manager of the bank, welcomed the members and briefed them about the priority areas. The General Managers, Mr G.K. Bhat, Mr N.S. Chakkera and Mr K.H. Shivaswamy Aithal, also spoke on the occasion.

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`Repo rate hike to hit bank profits'