#Karnataka Bank FY14 Q4 Net Profit at Rs.81.21 crore, up 20.51% but Net NPA up at 1.91%

Mangalore based Premier Private Sector Bank, Karnataka Bank Ltd., has reported an increase of 20.51% in its Q4 Net Profit at Rs.81.21 crore. In the corresponding period of last year, the net profit was at Rs.67.39 crore. The meeting of the Board of Directors of the Bank which was held today, here at Mangalore, has approved the audited financial statements. Bank has also proposed a dividend of 40% to its share holders.


The business turnover of the Bank has touched Rs. 68,928 crore as on 31-03-2014, registering a growth rate of 12.51% on year-on-year basis. The deposits of the Bank grew from Rs.36056.22 crore to Rs.40582.83 crore with a growth rate of 12.55% and advances grew from Rs. 25207.68 crore to Rs. 28345.49 crore with a growth rate of 12.45 %.


The gross income of the Bank for the year has increased from Rs. 4161.93 crore to Rs. 4694.41 crore recording an annual growth rate of 12.79%. The operating profit of the Bank has increased from Rs. 635.34 crore to Rs.687.05 crore showing a growth rate of 8.14%. The Net Interest Income has increased by 16.86 % on year-on-year basis to Rs. 1056.07 crore from Rs. 903.73 crore. The annual Net Profit is Rs. 311.03 crores.


The capital adequacy ratio of the Bank stood at 13.30 % (under Basel II) and at 13.20% (under Basel III) as at the end of March-2014 as against minimum 9% stipulated by RBI.


“The year 2013-14 was a challenging year for the economy on account of various domestic and international factors. Inspite of this, Karnataka Bank has been able to show a modest growth in all spheres of banking and has also made prudent provisions, which goes a long way in strengthening the Balance Sheet. Sustainable growth, containing the NPAs, prudent provisioning, expansion of network of branches and ATMs etc have been the highlights of

Current Year’s performance. Going forward, the increased network of branches, implementation of BPR [ Business Process Re-engineering] recommendations etc will add to the top line and I am optimistic of an impressive growth in the years to come”, said Shri P Jayarama Bhat, MD & CEO of the Bank. “Capital Adequacy of 13.20% as per Basel III, as against the minimum stipulation of 9% by RBI, is a testimony for Bank’s inherent strengths”, he added.


The Bank which has its presence in 21 states and 2 union territories has opened 50 new branches & 196 ATMs during 2013-14. As on 31-03-2014 Bank has 600 branches and 700 ATMs. The Bank has plans to open 75 more new branches and 300 more new ATMs by March-2015, thus aiming for 1,675 service outlets, consisting of 675 branches & 1000 ATMs.


During the year, Bank has received many recognitions:

Bank has bagged the “ABP News – BFSI [Banking Financial Services & Insurance] Best Bank Award” under the Category of Private Sector Banks.

Bagged the coveted “Federation of Indian Export Organisations [FIEO] Southern Region Excellence Award 2012-13”,

Adjudged as the 2nd Runner up of “IBA Banking Technology Awards 2012-13” for Customer Management Initiative under private sector banks category.

Adjudged “Runner Up” of ASSOCHAM Social Banking Excellence Award 2013 under the “Private Sector Banks Category” in recognition of the significant initiatives being undertaken by the Bank in the sphere of social banking.

Bagged “Sunday Standard FINWIZ – 2013 Best Bankers Awards” under 3 categories, viz

Best Bank for Customer Friendliness under the category of Midsized Banks.

Best Banker for Customer Orientation under the category of Private Sector Banks.

Best Banker for HR under the category of Private Sector Banks.

Bagged the coveted IDRBT Banking Technology Excellence Awards for the year 2012-13 among Small Banks, under 2 categories viz [a] Best Bank Award for Managing IT Risks. [b] Best Bank Award for use of IT for business innovation.


As part of Financial Inclusion initiative, Bank has opened 13 Financial Inclusion branches apart from 17 Ultra Small branches in Unbanked Rural areas during the year 2013-14.

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.

PERFORMANCE HIGHLIGHTS

(Rupees in Crore)

Parameters	Q4 FY14	Q4 FY13	% change / Variation	FY14	FY13	% change / Variation
Advances	28345	25208	12.45	28345	25208	12.45
Deposits	40583	36056	12.55	40583	36056	12.55
Total Income	1172.58	1090.32	7.54	4694.41	4161.93	12.79
Other Income	113.98	129.18	-11.77	505.58	397.64	27.15
Net Profit	81.21	67.39	20.51	311.03	348.08	-10.64
Gross NPA %	2.92	2.51%	41 bps	2.92	2.51%	41 bps
Net NPA %	1.91	1.51%	40 bps	1.91	1.51%	40 bps
Net Interest Income	249.93	221.40	12.89	1056.07	903.73	16.86
Net Interest Margin (%)	2.17%	2.17%	Nil	2.40	2.31%	9 bps
CRAR (%) Basel II	13.30	13.22%	8 bps	13.30	13.22%	8 bps
CASA Ratio (%)	25.42	24.92%	50 bps	25.42	24.92%	50 bps
CD Ratio (%)	69.85	69.91%	-6 bps	69.85	69.91%	-6 bps

 

Karnataka Bank Ltd and Credit Analysis & Research Ltd (CARE) Join Hands to Boost MSME Advances

Karnataka Bank Ltd., one of the leading Private Sector Banks of India, has joined hands with M/s. Credit Analysis & Research Ltd (CARE), by entering into a MOU for providing Credit Rating Services to the Micro and Small Enterprises sector and due diligence services for the MSME clients of the Bank. With a view to assist the potential/ existing MSE clientele of the bank, CARE will provide credit rating for such entities rating services under a Special Incentive by discounting its rating fees and also provide Due Diligence Service for MSME units in existence for more than one year. The rating services provided by CARE are an independent third party assessment of the overall condition of the MSEs and will benefit them in benchmarking themselves in the market place while due diligence service will provide customized solution for an independent and unbiased verification of customer profile for meeting the specific needs of the customer. The economy is posing challenges for potential investors and funding entities like banks, making it imperative for Banks to carry out exhaustive appraisal of these project prior to funding them. The Bank will be benefitted by the assistance provided to the potential/ existing MSE customers of the Bank. Dr.Meera Aranha, General Manager, Credit-‘B’, of Karnataka Bank Ltd and Shri Mehul Pandya, Chief General Manager & Head- SME, M/s.Care Analysis & Research Limited., have signed the MOU in this regard at Mangalore on 17th February 2014. Executives of the Bank from Credit Department viz, Sri. Upendra Prabhu N, General Manager, Sri.V N Manohar, Deputy General Manager, Sri Venkatakrishna Bhat, Asst General Manager, Smt Kalyani R Rao, Chief Manager & Mr. M Chandrasekar and Mr.Vikas P from M/s Credit Analysis & Research Ltd were present on the occasion.

Exporters' Meet organized jointly by Karnataka Bank Ltd and Federation of Indian Export Organization (FIEO) in Kolkata

Exporters' Meet was organized jointly by Karnataka Bank Ltd and Federation of Indian Export Organisation (FIEO) on 2O.O9 .2OI3 at Kolkata. M/ s KPMG Advisory Services was the knowledge partner for the event. The meeting was organized to promote export business in and around Kolkata. The programme was presided over by Shri. P.Jayarama Bhat, Managing Director and CEO of Karnataka Bank Ltd.
Shri Ramesh Kumar Agarwal, Regional Chairman, FIEO, Eastern Region welcomed the guests and Shri. Chandrashekar Rao. B, Deputy General Manager of Karnataka Bank gave a brief note on the purpose of organizing the event in association with FIEO. He also briefed the gathering about the infrastructure available to handle foreign exchange business in Karnataka Bank for effectively catering to exporters.
Shri. P.Jayarama Bhat, Managing Director and CEO of Karnataka Bank Ltd in his presidential remarks informed that the Bank treats export credit as National Priority and to further facilitate the exporters, the Bank has taken a decision to reimburse the interest subvention on rupee export credit upfront on monthly basis w,e.f 01.O7.2OI3 to all the eligible exporters. He also informed that Bank is committed to provide export credit to all the eligible exporters at a competitive interest rate and assured the exporters of Kolkata that they will get excellent service from our Bank at al1 times.
Shri. Neeladrinath Bhattacharjee, Director, Management consulting for KPMG in India gave a presentation on "current global forex scenario, impact on Indian forex market, effect on exporters and way forward for Rupee". He informed that KPMG foresees rupee value against dollar at Rs.60-62 for the current year 201.3-14.
Shri  Srinivas S Dandapur, senior Manager, Forex support Group of Karnataka Bank gave a presentation on the forex infrastructure of Karnataka Bank and the forex products available to the exporters. He informed that Karnataka Bank is in the forex business for last 3 decades and the Bank has all necessary forex infrastructures to deliver hassle free service to forex customers.
During the open house session, various issues related to hedging, guidance for rupee against US dollar were discussed.
Shri. Gokuldas Pai, Assistant General Manager and Regional Head of Kolkata region proposed vote of thanks. More than 125 exporters in and around Kolkata participated in the exporters’ meet.

Sri P.Jairama Hande is new Senior General Manager of Karnataka Bank

Karnataka Bank now has a new Senior General Manager in Sri. P. Jairama Hande, 58 Years.Mr. Hande joined the Bank in 1976, and has rich experience of over 37 years both at administrative and operational level.
As a Branch Head, he served at Bangalore – Jayanagar IV Block, Bangalore – Nehrunagar and Bangalore – Kasturba Road Branches. As Chief Manager and later as Assistant General Manager, he served at Head Office – Credit Department, Regional Office – Bangalore, Mumbai - Fort Branch and HO- Treasury and Accounts Department.
On his promotion as Deputy General Manager in 2001, he headed the Treasury and Accounts Department and later Credit Department, at Bank’s Head Office.Sri. P. Jairama Hande was promoted as General Manager in 2008 and has handled key portfolios such as Planning and Development, Treasury & Accounts, Legal & Recovery and IT & MIS. He is also the Chief Financial officer of the Bank

Besides being a graduate in Commerce [B.Com] and graduate in law [L.L.B], he is also a Certified Associate of Indian Institute of Bankers (CAIIB).: