Interest income up

The Mangalore-based Karnataka Bank saw its turnover cross Rs 17,000 crore. The deposits grew 15.2 per cent to touch Rs 10,837 crore and advances 34.7 per cent to reach Rs. 6,287 crore.

The net interest income of the bank rose from Rs 213.68 crore in 2003-04 to Rs 316.89 crore, registering a growth of 48.30 per cent due to growth in advances and considerable reduction in interest cost. The net NPA declined from 4.98 per cent as at March 31, 2004 to 2.29 per cent as on March 31.

The bank saw its capital adequacy ratio improve to 14.16 per cent from 13.03 per cent as on March 31, 2004.

The net owned funds of the bank has crossed Rs 1,000 crore mark. Giving details of the performance of the bank, chairman Ananthakrishna said that the bank earned an increased net profit after providing depreciation on account of the transfer of SLR securities effected from 'Available for Sale' category to 'Held to Maturity' category as permitted by the RBI and also after providing for impact on wage revision.