The Karnataka Bank (KTKBANK) Q4 01/02 earnings summary

Executive summary

• FY2001-02 total business crossed ₹10,000 crore; deposits rose 15.24% YoY to ₹7,001.48 crore and net advances increased 20.84% to ₹3,417.54 crore.

• Net profit doubled to ₹91.13 crore from ₹45.41 crore; proposed dividend increased to 60%, subject to RBI approval, from 45%.

Financial highlights

• Total income rose 32.40% to ₹984.26 crore; interest earned was ₹743.24 crore and other income ₹241.02 crore, up 169.35% YoY.

• Operating profit grew 84.38% to ₹250.88 crore; net profit increased 100.68% to ₹91.13 crore.

• Net profit included ₹21.45 crore transferred from the Investment Reserve; other income included ₹179.74 crore net profit on investment sales versus ₹30.32 crore in FY2000-01.

• Net investments rose 24.40% to ₹3,467.15 crore; total assets increased 16.27% to ₹7,762.93 crore.

Outlook and guidance

• FY2002-03 corporate goal: total business of ₹13,000 crore, supported by better customer service and operating efficiency.

• Growth drivers identified included agricultural recovery, home loans, IT and infrastructure demand; outlook viewed as positive as recession appeared to be bottoming out.

• Finacle core banking rollout, rural and retail banking focus, treasury operations and planned ATMs and insurance distribution were expected to support efficiency and non-interest income.