Karnataka Bank's business up 19% in FY10

Mangalore-based private sector bank - Karnataka Bank has registered a business growth of 18.74 per cent to Rs 38,166 crore during the year 2009-10.

On an year-on-year basis, the deposits of the bank grew from Rs 20,333 crore to Rs 23,731 crore (16.71 per cent increase) and advances grew from Rs 11,810 crore to Rs 14,436 crore (22.23 per cent increase). The growth in CASA deposit during 2009-10 was 36 per cent.

The capital adequacy ratio of the bank stood at 12.37 per cent under Basel II as at the end of March 2010. The board of directors have recommended a dividend of Rs 4 per share.

The bank which has 464 branches at present is planning to take the number to 480 and also its own ATMs from 217 to 300 by the end of March 2011. Thus, the bank has plans to increase its number of business units to 780 by March 2011. The bank is going to focus more on under-banked areas for further branch expansion. For better administrative control, the bank has opened its 9th Regional Office in Hyderabad recently.

The bank introduced quite a number of new products under the savings bank accounts like KBL Kishore for students in the age group of 12-18, KBL Tarun for students in the age group of 18-25, KBL Salary Privilege for salaried persons.