Managing Director and Chief Executive Officer of the bank P Jayarama Bhat highlighted its performance during the financial year 2016-17 and rolled out the business agenda for the new fiscal. As on March 31, 2017, the bank has 2,145 service outlets comprising of 765 branches and 1,380 ATMs across the country.
"With the completion of rights issue, bank has augmented its capital funds to the extent of Rs 658.96 crore and the capital adequacy ratio has improved further paving the way for further expansion of business in the coming years," Bank MD & CEO P Jayarama Bhat said in a regulatory filing.
The bank saw a drop in gross NPA levels to 3.44 percent in FY16 from 2.95 percent in year before. This was mainly because of the bank's limited exposure to steel companies and large corporates, says Managing Director P Jayarama Bhat.
In an interview to CNBC-TV18, P Jayarama Bhat, MD, Karnataka Bank, talks about the company‘s third quarter results and its future outlook.
Karnataka Bank's managing director P Jayarama Bhat expects gross non performing assets are likely to improve to 2.25-2.50 percent by 2014-end.
Karnataka Bank has set itself a gross NPA target of less than 2.5 percent and net NPA target of less than 1 percent for this financial year.
The bank is looking at deposits of Rs 45,500 crore and advances of Rs 32,500 crore for the current fiscal
The profit before tax gained 77 per cent y-o-y to Rs 117 crore. In an interview to CNBC-TV18, P Jayarama Bhat, MD of Karnataka Bank said that The gross NPA has gone up from Rs 729 crore to Rs 781 crore. However, two accounts are pending in CDR and if it is considered then the gross NPA level will come down.
Mangalore-based private sector lender Karnataka Bank's (KB) third quarter (October-December, 2012-13) net profit moderated to 11% year-on-year to Rs 80 crore on the back of increased tax expenses. However, the profit before tax gained 77% y-o-y to Rs 117 crore.
Mangalore-based Karnataka Bank (KB) have been steadily inching up on persistent talk that the bank may be a potential takeover candidate. And even if there is no merit in the speculation, the bank‘s strong earnings performance in the September quarter may be comforting to investors.
P Jayarama Bhat, managing director and chief executive officer of Karnataka Bank says, he sees net interest margin (NIM) over 3% by March 2013.
The bank had guided to post 25% growth in advances in FY12 and it maintains the same. "We are giving interest on retail advances and there is a robust increase in the retail advances growth," Bhat explained.
The market has been buzzing with speculation about consolidation in the private banking space. The latest rumours that Karnataka bank may be the next bride, sent the stock up 10%. CNBC-TV-18’s Sajeet Manghat and Vidhi Godiawala report on the possible suitors.
Speaking to CNBC-TV18, P Jayarama Bhat, managing director of Karnataka Bank, said that the bank expects credit growth of 25-30% and deposit growth of 20% in FY12. The bank has also increased its base rate to 10.25% with effect from today.