Karnataka Bank net flat

Mangalore-based Karnataka Bank's net profit for the quarter-ended September 2004 fell 9.17 per cent over the corresponding last year to Rs 31.28 crore.

Total income decreased 11.7 per cent during the period to Rs 243.15 crore owing to a 53 per cent fall in other income (treasury operations). Other income stood at Rs 31.08 crore (Rs 66.10 crore).

In the first half of the year profits grew marginally to Rs 70.01 crore from Rs 69.17 crore recorded in H1 2003. However, total income fell 6.58 per cent over the same period last year to Rs 555.73 crore. Other income in the first half stood at Rs 135.95 crore (Rs 174.88 crore).

Return on assets as on September 2004 improved to 1.35 per cent (1.29 per cent). Net NPA fell to 3.97 per cent (6.5 per cent) of advances or Rs 190 crore.

Deposits as on September 2004 stood at Rs 9,250 crore growing 6.75 per cent year-on-year. However, they fell 1.6 per cent compared to March 2004. Advances year-on-year grew 18.55 per cent to Rs 4,810 crore.

The bank has proposed a rights issue and its board is scheduled to meet on November 9 to consider the issue.