Karnataka Bank’s Q 3 Net Profit up by 86.71%

Karnataka Bank’s Q 3 Net Profit up by 86.71%

Mangalore Today News Network

Mangalore, Jan 21, 2012: Karnataka Bank’s net profit increased to ` 72.05 crore for the quarter ended December 31, 2011, from `38.59 crore in the corresponding year-ago quarter, up by 86.71%.

The net profit for the NINE months period ended December 31, 2011 is `162.91 crore as against ` 113.79 Crore as at 31-12-2010 showing a growth rate of 43.17%.
  
The business Turnover of the bank has touched `49475 crore registering a growth of 19% on an year-on-year basis (Nine months).  The deposit of the bank has shown YOY growth of 17% and advances has shown growth of 21%.

The Gross income of the bank for the NINE months period ended December 31, 2011 has increased from `1917 crore to `2492 crore recording a growth rate of 30%.  The operating profit of the Bank has increased from `264 crore to `328 crore showing a growth rate of 24%.  The Net Interest Income has increased by 28% on a year-on-year basis to `522 crore from `408 crore. 

The capital adequacy ratio of the Bank stood at 12.46% (under Basel II) as at the end of December, 2011. 

The Bank which has its presence in 20 States and 2 Union Territories of the country has 489 Branches and 312 ATMs as on date.  The Bank has plans to increase the number of branches to above 500 and take the tally of its ATMs to 325 by March 2012.  All the 489 branches have been networked under core banking solution covering 100% business.  The Bank which is tech savvy is keen on upgrading its technology-driven offerings periodically to meet the varying needs and demands of its clients and be at par with other leading private and public sector banks in the country.  The Bank by networking all its branches under Core Banking solution is offering Anytime Anywhere banking facility to its customers. 

The Bank has introduced a slew of new products which include Point of Sale (POS) terminal facility also. The Bank has a strategic tie up with M/s Way2Wealth Brokers Pvt. Ltd. for providing Online Trading facility.  The Bank proposes to introduce Gift card, Travel card and ASBA (Application Supported by Blocked Amount) facilities to its customers during the current financial year.  Mobile banking facility will also be introduced soon. Bank has increased the rate of interest on savings bank deposits to 5% p.a. This benefit has been extended to all the customers, without any restrictions of minimum balance.Bank has been offering enhanced interest of 9.75% p.a. for N.R.I deposits for a period of 1 year & up to 2 years.   The Bank is eyeing business turnover of ` 54,000 crore for the year 2011-12 comprising of deposit of ` 32,500 crore and advances of ` 21.500 crore.  The Bank in its quest to aim at accelerated growth, has recently entrusted the business process re-engineering exercise to M/s KPMG Advisory Services Pvt. Ltd