Sunday, November 2, 2014

#Karnataka Bank Q2 profit doubles on lower provisioning

On account of lower provisioning Karnataka Bank has posted a net profit of Rs.88.46 crore during the quarter ended September 2014 registering a y-o-y growth of 205.56%. The bank had reported profit of Rs 28.95 crore in the same quarter last fiscal.The Net Profit for the Half Year ended September 2014 has reached Rs. 210.09 crore with a growth rate of 70.65% as against Rs. 123.12 crore for corresponding Half Year ended September 2013.

Announcing the results, Shri P Jayarama Bhat, MD & CEO of the Bank, said “the business turnover of the Bank has touched Rs. 73,914 crore registering a y-o-y growth of 14.63 per cent. Deposits of the Bank have increased to Rs. 44,196 crore registering a y-o-y growth of 16.26 per cent and advances to Rs. 29,718 crore, registering a y-o-y growth of 12.27 per cent”.

Provisions were lower by 34% to Rs 84 crore compared to Rs 127 crore in the same quarter a year ago. The percentage of net NPA rose to 2.37% from 2.25% year ago.

Current Account, Savings Account (CASA) increased by Rs. 1,707 crore from Rs. 9,040 crore to Rs. 10,747 crore and constitutes 24.32% of total deposits.

The Capital Adequacy Ratio stood at 12.31 per cent [under BASEL II] and 12.08 percent [under BASEL III] against the regulatory requirement of minimum 9 per cent. Similarly, the Return on Asset (ROA) also improved by 29 bps to 0.87% as against 0.58% an year ago.

“Inspite of trying economic conditions and continued pressure on asset quality, Bank has been able to post an impressive result on account of strong fundamentals” said Sri P Jayarama Bhat, MD & CEO of the Bank.

The Bank plans to open 75 new branches and 300 new ATMs during current year, thus aiming for 1,675 service outlets, consisting of 675 branches & 1000 ATMs. During the Current Financial Year, the Bank has already opened 24 branches and 75 ATMs taking the tally of service outlets to 1399 with 624 branches and 775 ATMs. The Bank is eyeing a business turnover of Rs. 83,000 crore for the year 2014-15 comprising of deposits of Rs. 48,000 crore and advances of Rs. 35,000 crore.

During the current year, Bank has bagged ASSOCHAM’s Certificate of Excellence for Social Banking. Further, the HR initiatives of Shri P Jayarama Bhat, MD & CEO, were recognized and rewarded at the Asia Pacific HRM Congress 2014, in the form of an Award under the Category “CEO with HR orientation”.