The Karnataka Bank (KTKBANK) Q4 98/99 earnings summary

Executive summary

• FY99 deposits grew 28.57% YoY and advances 12.56%; net profit fell to ₹42.45 crore from ₹58.16 crore.

• Total income rose to ₹539.67 crore from ₹477.78 crore, while provisions and contingencies fell to ₹29.82 crore from ₹43.93 crore.

Financial highlights

• Interest earned was ₹491.39 crore vs ₹429.92 crore; interest expended rose to ₹375.29 crore from ₹291.63 crore.

• Operating expenses increased to ₹92.12 crore from ₹84.06 crore; net profit declined to ₹42.45 crore from ₹58.16 crore.

• Deposits reached ₹4,382.11 crore vs ₹3,408.35 crore; non-resident deposits were ₹386.20 crore vs ₹329.46 crore, up 17.22%.

• Investments rose 41.07% to ₹1,775.06 crore; advances increased 12.56% to ₹2,046.63 crore.

Outlook and guidance

• Plans called for further branch computerisation to support customer service; 122 branches were already fully or partially computerised.

• A Y2K contingency plan was approved; ₹50 lakh was earmarked in addition to ₹37 lakh already spent.

• A 45% dividend was recommended for FY99, subject to Reserve Bank of India approval.