Karnataka Bank Ltd. posts net profit of Rs. 246.07 crore

Karnataka Bank Ltd. posts net profit of Rs. 246.07 crore

Mangalore Today News Network

Mangalore, May 19, 2012: Karnataka Bank Limited, the premier private sector bank based in Mangalore, has posted a net profit of Rs 246.07 crore for the year ended 2011-12 as against the Rs 204.61 crore on March 31, 2011, showing an increase of 20.26%.

The business turnover of the bank has touched Rs 52,329 crore, registering a growth rate of 17.11% on a year-on-year basis.  The deposits of the bank grew from Rs 27,336 crore to Rs 31608 crore (15.63% increase), and the advances grew from Rs 17,348 crore to Rs 20,721 crore (19.44% increase).    

The gross income of the bank has increased from Rs 2,663 crore to Rs 3,447 crore, recording a growth rate of 29.47%.  The operating profit of the bank has increased from Rs 355 crore to Rs 510 crore, showing a growth rate of 43.60%.  The net interest income has increased by 21.47% on a year-on-year basis to Rs 744 crore from Rs 612 crore.

The capital adequacy ratio of the bank stood at 12.84% (under Basel II) at the end of March 2012. The board has recommended dividend of 35%.

The bank, which has its presence in 20 states and 2 union territories of the country, is one of the leading private sector banks that have crossed the land mark of 500 branches. As on March 31, 2012, the bank has 503 branches and 352 ATMs.  All the branches have been networked under core banking solution covering 100% business.  In line with national priority, the bank has opened financial inclusion branches at Kairangala and Horanadu and has provided banking facilities through B C Model (business correspondents) to 69 hitherto unbanked villages. The bank has also sponsored the Financial Literacy and Credit Counseling Centre at B C Road, Karnataka.

The bank has plans to open 50 more new branches and 100 more new ATMs by March 2013.  Being tech savvy, the bank is keen on upgrading its technology-driven offerings from time to time to meet the varying needs and demands of its clients.  The bank has introduced a slew of new products such as Point of Sale (POS) terminal facility, Gift Card, and Travel Card. The Bank has strategic tie-up with M/s Way2wealth Brokers Pvt. Ltd. for providing online trading facility.  It proposes to introduce ASBA in addition to mobile banking for its customers during the current financial year.

Besides, the bank is eying business turnover of Rs 65,000 crore for the year 2012-13 comprising deposits of Rs 39,000 crore and advances of Rs 26,000 crore.

In its quest to achieve accelerated growth, the bank has recently entrusted the business process re-engineering exercise to M/s KPMG Advisory Services Pvt. Ltd.