The Karnataka Bank (KTKBANK) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 net profit reached a record Rs.133.17 crore, up 20.94% YoY; total business exceeded Rs.14,000 crore.

• Deposits rose 13.45% to Rs.9,406.94 crore and net advances grew 19.70% to Rs.4,667.92 crore.

• Proposed dividend increased to 40% from 22%, subject to RBI approval.

Financial highlights

• Total income was Rs.1,118.74 crore, up 6.47% YoY; interest earned was Rs.848.45 crore and other income Rs.270.29 crore.

• Operating profit rose 30.16% to Rs.329.79 crore; net profit was Rs.133.17 crore versus Rs.110.12 crore.

• Interest expenditure declined Rs.21.84 crore; operating expenses were Rs.154.18 crore, 13.78% of total income.

• Investments increased 10.07% to Rs.4,878.91 crore; total assets grew 14.16% to Rs.10,576.63 crore.

Outlook and guidance

• FY 2004-05 targets: deposits of Rs.11,000 crore and advances of Rs.6,000 crore; 20 new branches planned.

• Plans include expanding core banking connectivity, ATM access, retail banking, and introducing debit cards, demat and internet banking services.

• Management expected agricultural and industrial growth to support banking activity, while intensifying NPA recoveries and assessing impaired-asset sales to recovery companies.