Our Bureau

The Karnataka Bank Chairman, Mr Anathakrishna, at the inauguration of the bank's 379th branch in Visakhapatnam on Monday. - C.V. Subrahmanyam

Visakhapatnam , March 28

KARNATAKA Bank is planning to increase the number of its branches to 400, from the present 379, by the end of March 2006, according to Mr Ananthakrishna, its Chairman.

He was speaking to reporters here on Monday after the inauguration of the Shantipuram branch, the third in the city and 29th in the State.

He said two more branches would be opened before the month-end, one in Chennai and the other in Mysore, and during the next financial year 19 more would be added most of them in the North.

He said the bankwanted to set up more branches in the North. After Karnataka, Andhra Pradesh was the most important State for the bank and its turnover in the State amounted to Rs 900 crore (Rs 400 crore in deposits and the rest in advances).

He said the total deposits of the bank amounted to Rs 10,000 crore and the advances Rs 6,000 crore. It had earned a net profit of Rs 133 crore during the last financial year and there would be a hike of around 20 per cent in net profit. The bank had declared a dividend of 40 per cent last year.

The capital adequacy ratio was 16 per cent and the return on assets 1.35 per cent. The net NPA was 2.97 per cent.

He said the bank would launch international visa debit card in Bangalore on Tuesday.

"It is our aim to take the business turnover overall to Rs 20,000 crore and the turnover in Andhra Pradesh to Rs 1,000 crore.

Mr G. Rajagopala Reddy, Executive Director of Steel City Securities Ltd, inaugurated the bank.Mr P. Jayaram Bhat, General Manager, Planning, said core-banking solutions had been implemented and 275 branches (including the three in Visakhapatnam) had been networked.

Mr Joshi, the manager of the Shantipuram branch, said the city at present accounted for Rs 80-85 crore turnover and with the third branch it would touch the Rs 100-crore mark.

© Copyright 2000 - 2009 The Hindu Business Line