The Karnataka Bank (KTKBANK) Q4 05/06 earnings summary

Executive summary

• Total business turnover rose 22.83% YoY to ₹21,035 crore; total assets increased 19.37% to ₹14,953.27 crore.

• Net profit grew 19.63% to ₹176.03 crore as lower NPA provisioning offset a decline in treasury income and operating profit.

Financial highlights

• Total income increased to ₹1,184.84 crore from ₹1,061.08 crore; net interest income rose 15.49% to ₹365.97 crore.

• Operating profit declined to ₹328.29 crore from ₹340.71 crore; net profit was ₹176.03 crore versus ₹147.15 crore.

• Deposits grew 22.20% to ₹13,243.16 crore; advances rose 23.92% to ₹7,791.57 crore; investments increased 21.79% to ₹5,548.58 crore.

• Interest earned rose to ₹1,018.04 crore, while other income fell to ₹166.80 crore from ₹221.15 crore; interest expense increased to ₹652.07 crore.

Outlook and guidance

• FY07 targets: total business turnover ₹25,000 crore, comprising deposits of ₹15,000 crore and advances of ₹10,000 crore.

• Plans called for 415 branches and 125 owned ATMs by March 2007; total business units targeted at 540.

• Further core-banking expansion, web-based ticket booking, mobile top-ups and mutual-fund distribution were planned; Internet banking and Cash Tech had launched.