KARNATAKA BANK Share price

The Bank was incorporated on the 18th day of February 1924as The Karnataka Bank Ltd. to cater to the banking needs ofthe South Kanara Region. The Bank was promoted in 1924 byLate Shri BR Vyasarayachar and other leading members of theSouth Kanara Region. Under the able guidance of Shri K S N Adiga the second Chairman of the Bank who held the post for a period of 21 years the Bank made rapid progress thereby providing a strong foundation and has as a result grown in stature in terms of its number of branchesdeposits advances and now provides a wide gamut offinancial services to cater to the needs of trade industry commerce and agriculture. The mainstay of the Bank had been in rural banking duringthe sixties and seventies with a majority of the branchesof the Bank situated in rural and semi-urban areas. Theactivities of the Bank have played a role in the ruraldevelopment of the state of Karnataka. With the opening upof the economy the Bank in its quest to attain competitiveefficiency has opened branches in most of the majormetropolitan centres in India and has now a wide network of287 branches. The Bank became an authorised dealer inforeign exchange in the year 1977. The Bank has asignificant presence in the merchant banking arena sinceits commencement of its merchant banking division duringthe year 1989-90.Human relations have remained cordial and the Bank has notfaced any internal labour problems in the recent past andhas not faced any closures on account thereof.Some highlights/strengths of the Bank are as under:* The Bank has a strong branch network (Rural 104 Semi Urban 74 Urban 64 and Metropolitan 45) with branchesoutside Karnataka situated at most of the importantmetropolitan and commercial centres in India. * The Bank is active in non-fund based businesses likemerchant banking issue of guarantees acceptances lettersof credit etc.The income derived by the bank through its variousactivities is given below:HEAD OF INCOME Rs. incrores 1991 1992 1993 Interest and Discount on Advances 41.21 57.37 63.81Income from Investments 19.94 24.39 31.01Interest on Balance with RBl andother Inter Bank Lending 7.31 10.18 10.46Other Interests 0.18 0.04 0.29Commission Exchange and Brokerage 5.02 7.28 7.56Profit/Loss on Sale of Investments 0.05 0.01 0.01Foreign Exchange Earnings 0.81 2.16 2.23Dividend from Indian Cos. 0.01 0.01 0.03Other Income 0.50 0.61 0.93Total 75.04 102.05 116.34HEAD OF INCOME Rs. in crores 1994 1995 Interest and Discount on Advances 72.56 97.64 Income from Investments 41.14 50.20 Interest on Balance with RBl andother Inter Bank Lending 7.32 7.99 Other Interests 1.14 0.07 Commission Exchange and Brokerage 10.51 13.94 Profit/Loss on Sale of Investments 0.09 0.18 Foreign Exchange Earnings 2.78 3.78 Dividend from Indian Cos. 0.02 0.04 Other Income 1.26 -0.29* Total 136.82 173.55 * after charging the provision for depreciation onsecurities to Income account. Income on Merchant Banking Activities 1991 1992 1993 (Rs. in Iakhs)Underwriting & Brokerage 6.95 22.07 34.20 Income (included in other income) Income from Bridge Loans -- -- 118.34 (included in Interest income).Total Income 6.96 22.07 152.54 Income on Merchant Banking Activities 1994 1995 (Rs. in Iakhs)Underwriting & Brokerage 28.15 10.47 Income (included in other income) Income from Bridge Loans 96.14 33.64 (included in Interest income).Total Income 124.29 44.11 * The Bank has a qualified team of employees numbering over3400.* The operations of the Bank at its Head Offi