A recent press report said that growth in net interest income and good control over the cost of deposits has helped Karnataka Bank Limited to record a 7.09 per cent growth in net profit during the first quarter of 2011-12.
Reports said that during the first quarter, the net interest income of the bank stood at Rs 153.68 crore, recording a growth of 36.29 per cent. And the operating profit stood at Rs 107.08 crore (Rs 75.52 crore).
Mr. P. Jayarama Bhat, Managing Director and Chief Executive Officer said that the cost of deposits was controlled at 7.54 per cent (6.97 per cent) in spite of the increase in deposit rates. He also said that the yield on advances stood at 11.75 per cent and spread had increased from 3.64 per cent in Q1 of 2010-11 to 4.21 per cent in the first quarter of the current fiscal.
Mr. Bhat also said that the bank’s other income during the period was Rs 82.10 core , of which its trading profit stood at Rs 14.87 crore and fee-based income at Rs 67.18 crore .The bank’s net interest margin was at 1.93 per cent during the period.
The bank offers services like multi-branch banking, deposit schemes and savings bank deposit, K-Flexi deposit, resident foreign currency (domestic) account, NRI services, Senior Citizens Deposit Scheme and loan schemes as Vidyanidhi education loan scheme, Apna ghar home loans, car finance scheme, Varthak loans etc.