Page 24 - Banking Finance December 2017

PRESS RELEASE

Buy Karnataka Bank, target Rs 172.10: ICICI Direct

ICICI Direct has a buy call on Karnataka Bank with a target price of Rs 172.10. The current market price of Karnataka
Bank is Rs 170.30. Time period given by the analyst is intraday when Karnataka Bank price can reach defined target.
ICICI Direct recommended to keep a stop loss at Rs 166.50. Karnataka Bank, incorporated in the year 1924, is a banking
company (having a market cap of Rs 4,757.92 Crore).
Karnataka Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills which contributed Rs
3,793.56 Crore to Sales Value (73.15 per cent of Total Sales), Income From Investment which contributed Rs 1298.23
Crore to Sales Value (25.03 per cent of Total Sales), Interest which contributed Rs 91.42 Crore to Sales Value (1.76 per
cent of Total Sales) and Interest On Balances with RBI and Other Inter-Bank Funds which contributed Rs 2.19 Crore to
Sales Value (0.04 per cent of Total Sales)for the year ending 31-Mar-2017.

Karnataka Bank to focus on credit growth

Karnataka Bank Ltd will focus on credit growth during the current finanical year, according to Mahabaleshwara MS,
Managing Director and Chief Executive Officer of the bank. Speaking at the quarterly review conference of the regional
heads of the bank in Mangaluru on Monday, he said that the bank has been able to show satisfactory growth in the
second quarter of 2017-18 in spite of subdued market conditions. The credit deposit ratio stood at 72.72 per cent during
the quarter. Stating that the bank shall continue to focus on five important areas for consistent growth credit, NPA (non-
performing asset) management, CASA (current account savings account), fee-based income and digital innovations - he
said: "It is the need of the hour to concentrate on credit growth, especially in retail and mid corporate sectors, without
losing focus on the quality of assets."

Karnataka Bank revamps its website

Karnataka Bank launched its revamped website. Quoting Mahabaleshwar MS, Managing Director and Chief Executive
Officer, a press release said the website is the face of any organisation in online world as it is an imperative platform to
establish its credibility and to showcase products and services. The revamped website is designed with a theme of simplicity
and clarity keeping in view the ever changing aspirations of new generation customers. It provides an aesthetic look and
feel and ensures smooth and hassle free user experience. In its pursuit of aligning with the latest technology and meet
the aspirations of young customers, the bank has redesigned its website with user-friendly interface, modern outlook,
and advanced and enhanced features and functionalities, he said. The revamped website was launched in the presence
of P Jayarama Bhat, Chairman of the bank, in Mangaluru.

Karnataka Bank posts Rs. 93.38 crore profit in Q2

Bank announced posting of a net profit of Rs. 93.38 crore for Quarter 2 of 2017-18, a reduction of 24.58% compared to Rs.
123.82 crore net profit earned during Q2 of 2016-17. However, the operating profit of the Bank showed 57.35% growth,
from Rs. 232.75 crore in Q2 of last financial year to Rs. 366.24 crore in the current Q2, said a release from the Bank. The
Board of Directors approved the financial results for the quarter and half-year ended September 30, 2017, in their meeting
held in Mangaluru. The Net Interest Income for the half year increased by Rs. 102.71 crore, from Rs 761.94 crore to Rs.
864.65 crore, registering a year-on-year growth of 13.48%. The Bank clocked a total business of Rs. 97,685.49 crore as on
September 30, registering a y-o-y growth of 8.89%. Deposits of the Bank rose to Rs. 56,558.45 crore registering a y-o-y
growth of 6.52%. Advances rose to Rs. 41,127.04 crore registering a y-o-y growth of 12.34%, the release said.
The Capital Adequacy Ratio stood at 12.46% against the regulatory requirement of minimum 9%. Gross non-performing
assets (NPAs) stood at Rs. 1,715.70 crore as on September 30 constituting 4.13% of gross advances as against 4.34 % as
on September 30, 2016. Net NPAs stood at Rs. 1,246.81 crore constituting 3.04% of net advances as against 3.20% the
previous half year. Bank's Managing Director and CEO M.S. Mahabaleshwara said the results have brought out favourable
factors for further growth.

24 | 2017 | DECEMBER | BANKING FINANCE

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