The Hindu Business Line : Karnataka Bank net slips on provision for depreciation

Mangalore, July 25 Karnataka Bank Ltd has registered a decline of 60 per cent in net profit at Rs 20.70 crore in the first quarter of 2008-09 as against Rs 51.79 crore in the corresponding period of the previous fiscal. Speaking to Business Line, after the board meeting here on Friday, Mr Ananthakrishna, Chairman and Chief Executive Officer, attributed the fall to the provision for depreciation in investments.

The bank provided around Rs 101 crore for this. It has an investment portfolio of around Rs 6,000 crore, he said.

The net interest income stood at Rs 140.78 crore (Rs 124.4 crore), a growth of 13.16 per cent. Other income stood at Rs 49.83 crore (Rs 41.78 crore).

He said the yield on advances increased to 12.58 per cent (10.79 per cent) during the first quarter of the current fiscal. The cost of deposits went up to 7.33 per cent (6.56 per cent).

To a query on deposit growth, he said that on a year-on-year basis the deposits grew by 22.05 per cent to reach Rs 17,362 crore. Advances grew by 14.88 per cent to touch Rs 10,820 crore.

The total business of the bank stood at Rs 28,182 crore.

‘No decision on rights’

Asked if any decision was taken on the rights issue at the board meeting on Friday, he said that the subject was not discussed at the meeting.

A press release said that the bank opened branches at Moradabad and Karol Bagh in New Delhi in the first quarter of the financial year to take the number of its branches to 433.

The bank has plans to increase the number of branches to 460 by March 2009.

On Friday, the scrip of Karnataka Bank closed at Rs 134.65 on the BSE, against the previous close of Rs 139.95.

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