The Hindu Business Line : Karnataka Bank net up at Rs 51.8 cr

Mangalore, July 27 Karnataka Bank Ltd has posted a net profit of Rs 51.79 crore for the first quarter of the current financial year as against Rs 36.78 crore in the corresponding period of the previous year, recording a growth of 40.81 per cent.

Mr Anantakrishna, Chairman and Chief Executive Officer, told Business Line that increase in net interest income and higher yield on advances contributed for the growth in net profit.

The net interest income rose 30.51 per cent to Rs 124.4 crore (Rs 95.32 crore).

The yield on advances went up to 10.79 per cent during the first quarter of 2007-08 as against 9.61 per cent in the corresponding period of the previous fiscal. The cost of deposits went up to 6.56 per cent (6.24 per cent).

To a query on deposit growth, he said that there has been improvement in retail deposits. “On a year-on-year basis, retail deposits alone have witnessed a growth of around 18 per cent,” he said.

On a year-on-year basis, the deposits grew by 11.27 per cent to reach Rs 14,448 crore (Rs 12,984 crore) and advances by 20.72 per cent to touch Rs 9,419 crore (Rs 7,802 crore).

The bank is eyeing a business turnover of Rs 28,500 crore for 2007-08. During the first quarter of the current fiscal, gross income rose to Rs 403.67 crore (Rs 330.64 crore) and operating profit went up by 17.76 per cent to Rs 103.84 crore (Rs 88.18 crore).

On Friday, the shares of Karnataka Bank closed at Rs 184.75 on BSE against the previous closing of Rs 196, down by 5.74 per cent.

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