Karnataka Bank posts net profit of Rs 340.08cr

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MANGALORE: The city based private sector bank – Karnataka Bank Ltd has posted a net profit of Rs 348.08 crore for financial year 2012-13 as against Rs 246.07 crore for 2011-12 showing a growth rate of 41.46%. Business turnover touched Rs 61263.90 crore registering a growth rate of 17.07% on year-on-year basis. The deposits grew from Rs 31,608.32 crore to Rs 36056.22 crore, a growth of 14.07% and advances from Rs 20,720.70 crore to Rs 25207.68 crore growth of 21.65 %.

The gross income increased from Rs 3,447.27 crore to Rs 4161.93 crore recording a growth rate of 20.73%. The operating profit increased from Rs 510.21 crore to Rs 635.34 crore showing a growth rate of 24.53%. The net interest income increased by 23.44% on year-on-year basis to reach Rs 903.73 crore from Rs 732.12 crore. The bank’s board has also recommended a higher dividend of 40% as compared to 35% last year, P Jayarama Bhat, managing director and CEO said.

The non performing assets (NPA) have shown declining trend. The net NPA has decreased from 2.11% as on March 31 last (Rs 435.20 crores) to 1.51% as on March 31, 2013 (Rs 377.75 crores). The gross NPA has also decreased from 3.27% as on March 31 last (Rs 684.72 crores) to 2.51% as on March 31 this year (Rs 638.86 crores). The capital adequacy ratio stood at 13.22% (under Basel II) as at the end of March 2013 as against minimum 9% stipulated by the RBI.

Good recovery in NPAs and growth in advances have contributed to an all time high net profit of Rs 348.08 crore, Bhat said. During Q4 of the financial year 13, the bank earned an operating profit of Rs 153.59 crore as compared to Rs 182.35 crore of Q4 FY12 and net profit of Rs 67.39 crore as compared to Rs 83.16 crore earned during Q4 FY12. Bank has acted prudently by making adequate provisions with an intention to strengthen the balance sheet”, Bhat observed.

The bank has plans to open 50 more new branches and 100 more new ATMs by March-2014, thus aiming for 1,200 service outlets, consisting of 600 branches & 600 ATMs. It is eyeing a business turnover of Rs 78,000 crore for 2013-14 comprising of deposits of Rs 45,500 crore and advances of Rs 32,500 crore. Bank has partnered with M/s KPMG Advisory Services for implementing Project Tejas, its business process re-engineering initiative.

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