Media Release

Mangalore, Nov 1: City-based premier Private Sector Bank, Karnataka Bank Ltd. has posted a net profit of 90.86 crore for the six months period ended September, 2011 as against Rs 75.20 crore as at 30.09.2010 showing a growth rate of 20.82%.

The business turnover of the bank has touched 47916 crore registering a growth of 17.65 % on a year-on-year basis. The deposit of the bank grew from Rs 25045 crore to Rs 28849 crore (15.19% increase) and advances grew from Rs 15683 crore to Rs 19067crore (21.58 % increase).

The half yearly Gross income of the bank has increased from Rs 1248.74 crore to Rs 1609.22 crore recording a growth rate of 28.87%. The operating profit of the Bank has increased from Rs 151.11crore to Rs 223.79 crore showing a growth rate of 48.10%. The net interest income has increased by 34.57% on a year-on-year basis to Rs 335.33 crore from Rs 249.19 crore.

The capital adequacy ratio of the Bank stood at 12.85% (under Basel II) as at the end of September, 2011.

The Bank which has its presence in 20 States and 2 Union Territories of the country has 486 Branches and 299 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 486 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 in addition to mobile banking facility to its customers during the current financial year

The Bank is eyeing business turnover of Rs 54,000 crore for the year 2011-12 comprising of deposit of Rs 32,500 crore and advances of Rs 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.