The Karnataka Bank (KTKBANK) Q4 11/12 earnings summary

Executive summary

• Total business turnover reached ₹52,329.02 crore, up 17.11% YoY; deposits exceeded ₹31,608 crore, advances ₹20,720 crore, and branches surpassed 500.

• Net profit rose to ₹246.07 crore from ₹204.61 crore; operating profit increased 43.60% to ₹510.21 crore.

Financial highlights

• Gross income was ₹3,447.27 crore versus ₹2,662.60 crore; net interest income was ₹744 crore.

• Deposits grew 15.63% to ₹31,608.32 crore; low-cost savings and current account deposits increased 14.12%.

• Advances rose 19.44% to ₹20,720.70 crore; agricultural advances reached ₹2,586.36 crore and priority-sector advances ₹7,570.27 crore.

• Investments increased 11.60% to ₹12,841.23 crore; total assets grew 14.60% to ₹36,321.57 crore.

• Net profit of ₹246.07 crore followed provisions and contingencies of ₹264.14 crore, versus ₹150.68 crore in FY11.

Outlook and guidance

• FY13 business turnover target: ₹65,000 crore, with deposits of ₹39,000 crore and advances of ₹26,000 crore; targeted growth 24%.

• FY13 network goals: 550 branches and 450 owned ATMs; business units targeted to reach 1,000 by March 2013.

• Domestic GDP growth was projected at 7.3% for FY13, with a normal monsoon and economic revival as assumptions; inflation and high crude prices remained concerns.