JOIN US Private sector lender Karnataka Bank on Friday reported three-fold jump in net profit at Rs 88.46 crore for the quarter ended September 30, 2014. It had registered net profit of Rs 28.95 crore during the July-September quarter of 2013.
Net interest income, the difference between interest earned and interest expended, rose by 4.5 per cent to Rs 297.3 crore in the quarter ended September 2014 compared to Rs 284.5 crore in same quarter last year.
Karnataka Bank MD and CEO P Jayarama Bhat 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 have increased to Rs 44,196 crore registering y-o-y growth of 16.26 per cent and advances to Rs 29,718 crore, registering y-o-y growth of 12.27 per cent”.
Current Account, Savings Account (CASA) figures rose Rs 1,707 crore from Rs 9,040 crore to Rs 10,747 crore and constitutes 24.32 per cent of total deposits.
The Capital Adequacy Ratio stood at 12.31 per cent (under Basel III) and 12.08 per cent against the regulatory requirement of minimum 9 per cent. Similarly, the Return on Assets (ROA) also improved by 29 basis points (bps) to 0.87 per cent as against 0.58 per cent year ago.
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 and 1,000 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 business turnover of Rs 83,000 crore for 2014-15 comprising deposits of Rs 48,000 crore and advances of Rs 35,000 crore.
“Total income has increased from Rs 1,152.49 crore for the quarter ended September 30, 2013 to Rs 1,278.44 crore for the quarter ended September 30, 2014,” the bank said.
Revenues from the corporate banking segment increased to Rs 428.62 crore in Q2 of 2014-15, from Rs 376.81 crore a year ago. The share of retail banking rose to Rs 502.50 crore during the quarter from Rs 476.02 crore a year ago.