Karnataka Bank has registered 120.8 per cent growth in net profit during the half year ended September 2012, at Rs. 200.62 crore against Rs.90.86 crore in the corresponding period last year, the bank said a press release.
On a quarter to quarter basis, the net profit has increased from Rs. 41.08 crore to Rs.117.19 crore, a year-on-year growth of 185.27 per cent. Its total business has increased by 17.63 per cent (Rs.8,448 crore), to Rs. 56,364 crore from Rs.47,916 crore during the period.
Total deposits increased by Rs.5119 crore, to Rs. 33,968 crore from Rs. 28,849 crore and advances by Rs. 3,328 crore, to Rs. 22,395 crore from Rs.19,067 crore.
Retail core deposits
The retail core deposits constitute 97.57 per cent of total deposits indicating a lower dependence on wholesale deposits.
The bank earned a total income of Rs. 2021.03 crore for the half year ended September 2012 as against Rs.1609.22 crore in the corresponding period in the previous year, registering a growth of 25.59 per cent.
P. Jayarama Bhat, Managing Director and CEO of the bank, said in the press release that the healthy growth in business, coupled with good recoveries, had enabled the bank to attain the present level of performance. The retail loan book, which accounted for 38 per cent of the portfolio a few years ago, has increased to 48.67 per cent. This “retail push” has increased the yield and delinquency has reduced. The bank plans to increase the retail loans portfolio to at least 60 per cent.
The bank is aiming to grow at a rate of over 25 per cent during the current financial year, with a business turnover of Rs. 65,000 crore consisting of deposits of Rs. 39,000 crore and advances of Rs. 26,000 crore, said Mr. Bhat in the press release.
Keywords: Karnataka Bank Q2 results