Karnataka Bank's Q4 net doubles

The total income for the period went up by 20.5 per cent to Rs 475.18 crore compared to the same period last year.

The rise in net profit was aided by rise in other income and lower provisions and contingencies during the quarter. The bank's other income went up by 32.9 per cent to Rs 54.48 crore during the fourth quarter compared to the same period last year.

The bank has also implemented Accounting Standard 15 which deals with pension, gratuity, leave encashment and other benefits to the employees. The transitional liability in compliance of this standard is Rs 33 crore which has been drawn from opening balance of revenue reserve.

The return on assets (not annualised) during the quarter improved to 0.32 per cent from 0.16 per cent in the corresponding quarter. The capital adequacy ratio has also improved to 12.17 per cent from 11.03 per cent in the year ago period. The net non-performing assets has declined to 0.98 per cent compared to 1.22 per cent last year.

For the year ended March 31, 2008, Karnataka Bank has reported a net profit of Rs 241.74 crore, a growth of 36.55 per cent compared to the previous year. The total income for the year went up by 25.6 per cent to Rs 1,797.90 crore compared to the previous year.

The board of directors of the bank have recommended a dividend of 50 per cent on the equity shares.