Karnataka Bank Q1 Net Profit Rs. 83.44 crore, up by 68%

Karnataka Bank Q1 Net Profit Rs. 83.44 crore, up by 68%

Mangalore Today news

Mangalore, July 20, 2012: “Karnataka Bank has registered a 67.62 per cent growth in Net Profit in Q-1of FY 2012-13 at Rs 83.44 crore against Rs 49.78 crore for the corresponding period last year”. Announcing Q1 result, Mr. P. Jayaram Bhat, Managing Director and CEO of the bank said that the total business has also increased by Rs 8,585 crore from Rs 45,640 crore to Rs 54,225 crore during the period, registering a y.o.y growth of 19 per cent.

 

 

While the total deposit increased by Rs 4,995 crore from Rs 27,552 crore to Rs 32,547 crore, registering a y.o.y growth of 18 per cent, the advances increased by Rs 3,591 crore from  Rs 18,087 crore to Rs 21,678 crore, registering a y.o.y growth of 20 per cent. The clientele base increased by 8.98 lakhs from 54.44 lakhs as on June 2011 to 63.42 lakhs as on June 2012. Current account, Savings account (CASA) increased by Rs 1,109 crore from Rs 6,585 crore to Rs 7,694 crore, registering a y.o.y growth of 17 per cent.

Mr. Jayarama Bhat, stated that the healthy growth in business coupled with good recoveries enabled the bank to attain the present level of performance. There has been robust growth in advances during the quarter as depicted by incremental CD Ratio of 102 per cent.

 

 

 

The bank earned a total income of Rs 989 crore during the quarter as against Rs 769 crore for the corresponding period, registering a growth of 29 per cent. The Operating Profit has increased by Rs. 62 crore from Rs. 107 crore (as on June 2011) to Rs. 169 crore (as on June 2012) and the growth rate is 58 per cent.  The net interest income has increased by Rs 72 crore from Rs 154 crore to Rs 226 crore registering a growth of 47per cent. The net interest margin also increased from 1.93 per cent to 2.45 per cent.

The annualised Earnings Per Share increased from Rs 10.56 as on June 30, 2011 to Rs 17.72 as on June 30 2012. The Book Value per share increased from Rs 128.39 to Rs 142.42. The capital adequacy ratio stood at 12.50 per cent (under BASEL II standards) against the regulatory requirement of minimum 9 per cent.

The bank is planning to increase the number of Service Outlets to 1,000 by increasing the number of branches to 550 and ATMs to 450 by the year end.  Against this, during the quarter the Bank has already opened 3 branches and 28 ATMs and the process of opening remaining branches & ATMs is on the way. 

The Bank is eyeing Business Turnover of Rs. 65,000 crore for FY 2012-13 with Deposits of Rs. 39,000 crore and Advances of Rs. 26,000 crore, he said. The bank aims to surpass Business Turnover of Rs. 100,000 crores by March 2015.


Mr. P. Jayarama Bhat, Managing Director and CEO of Karnataka Bank Limited, who has completed his first term on July 13, 2012, has been appointed yet again for a term of 3 years. The Reserve Bank of India (RBI) approved the re-appointment of Mr. Bhat as the MD and CEO of the bank for another 3 years with effect from July 14, 2012, according to the proposal of the Board of the Directors.

During the last three years, the bank recorded all-round progress and reached a height of Rs. 54,488 crores as on July 30, 2012 from Rs. 32,004 crore as on June 30, 2009. Besides, the bank’s capital fund has reached the Rs. 2,600 crore mark at the end of March 2012 and its capital adequacy ratio was 12.84 percent. While three years back, the bank had 447 branches, it now has a total of 504 branches. Its number of ATMs has also grown by more than 100 percent from 177 ATMs in 2009 to 382 ATMs at present. Besides, more ATMs are being opened all over the country for the convenience of its customers.

During Mr. Bhat’s tenure as MD and CEO, the bank introduced POS, travel cards, online trading accounts, gift cards, and others.

Mr. Bhat is a member of the Managing Committee of Indian Banks Association (IBA) and the honorary president of Bankers’ Club, Mangalore. He is the chairman of Private Sector Banks Association. During his tenure, the bank bagged Best Bank Award by IDBRT for managing IT risk under small bank category.

With Mr. Bhat as its MD and CEO for another term, the bank plans to cross business turnover of Rs. 1 lakh crore by March 2015.