KARNATAKA BANK LIMITED

KARNATAKA BANK LIMITED

Regd. & Head Office, Mangalore – 575002

UNAUDITED QUARTERLY FINANCIAL RESULTS FOR THE THREE MONTHS ENDED 31.12.2008

Rs. in lakh

		UNAUDITED				AUDITED
		Quarter Ended		Nine Months Ended
		31.12.2008	31.12.2007	31.12.2008	31.12.2007	31.03.2008
1	Interest Earned (a+b+c+d)	50804	40546	141915	115011	157081
a)	Interest/Discount on advances/bills	37507	28862	103875	81930	112299
b)	Income on Investments	12278	11383	35694	32210	43254
c)	Interest on balances with Reserve Bank of India and other inter bank funds	962	268	2160	788	1155
d)	Others	57	33	186	83	373
2	Other Income	9913	7391	20960	17261	22709
3	TOTAL INCOME (1+2)	60717	47937	162875	132272	179790
4	Interest expended	36975	28966	102735	79930	110171
5	Operating expenses (i+ii)	9911	6823	26069	20736	30559
i)	Employees Cost	6382	3817	15125	11853	18099
ii)	Other operating expenses	3529	3006	10944	8883	12460
6	TOTAL EXPENDITURE ((4+5) excluding provisions & Contingencies)	46886	35789	128804	100666	140730
7	Operating Profit before provisions & contingencies (3-6)	13831	12148	34071	31606	39060
8	Provisions (other than tax) and Contingencies	-4616	1050	7145	2650	5179
9	Exceptional Items	0	0	0	0	0
10	Profit (+)/Loss (-) from Ordinary Activities before tax (7-8-9)	18447	11098	26926	28956	33881
11	Tax Expense	9521	4195	8570	10860	9707
12	Net Profit (+)/Loss (-) from Ordinary activities after Tax (10-11)	8926	6903	18356	18096	24174
13	Extraordinary Items (net of tax expense)	0	0	0	0	0
14	Net Profit (+)/Loss (-) for the period (12-13)	8926	6903	18356	18096	24174
15	Paid up equity share capital (Face Value Rs 10/-)	12157	12135	12157	12135	12135
16	Reserves excluding revaluation reserves (as per balance sheet of previous accounting year)	-		-	-	125825
17	Analytical Ratios
i)	Percentage of shares held by Government of India	Nil	Nil	Nil	Nil	Nil
ii)	Capital Adequacy Ratio (%)	13.58	13.11	13.58	13.11	12.17
iii)	Earning per share (EPS) (Rs) a) Basic EPS b) Diluted EPS before Extraordinary items (net of Tax expense) b) ) Basic EPS Diluted EPS after Extraordinary items (net of Tax expense) * Not Annualised	7.35* 7.35* 7.35* 7.35*	5.69* 5.68* 5.69* 5.68*	15.12* 15.11* 15.12* 15.11*	14.91* 14.88* 14.91* 14.88*	19.92 19.85 19.92 19.85
iv)	NPA Ratios as on date a) Gross NPA Net NPA b) % of Gross NPA % of Net NPA c) Return on Assets- * Not Annualised	45122 16752 3.68 1.40 0.41*	37920 12825 3.56 1.23 0.38*	45122 16752 3.68 1.40 0.88*	37920 12825 3.56 1.23 1.05*	37957 10648 3.42 0.98 1.37
18	Public Shareholding -No of Shares -Percentage of Share holding	121564108 100%	121343548 100%	121564108 100%	121343548 100%	121343548 100%

Notes:

1. The Board of Directors have taken the above financial results for the quarter ended 31^st December 2008 on record at their meeting held on 23^rd January 2009.

2. The above results have been arrived at after considering usual and necessary provisions as per RBI guidelines and in accordance with Income Tax Act and Accounting Standards. Further provision for gratuity, pension, bonus, wage arrears have been made on an estimated basis.

3. The Bank has identified four business segments viz Treasury, Corporate and wholesale banking, Retail Banking and Other Banking operations and the Geographic Segments consist of the Domestic Segment only as the Bank does not have any foreign branch. The segment results are annexed.

4. During the quarter ended 31st December 2008, the Bank has allotted 91590 equity shares of Rs. 10 each upon exercise of vested options under the Karnataka Bank Employee’s Stock Option Scheme 2006.

5. Status of the shareholders complaints is as under:

Complaints pending at the beginning of the quarter	Complaints received during the quarter	Complaints redressed during the quarter	Complaints pending at the end of the quarter
Nil	29	29	Nil

6. The above results have already been subjected to Limited Review by the auditors.

7. Corresponding previous period figures have been regrouped / rearranged wherever necessary.

By order of the Board

Place: Mangalore

Date: 23^rd January 2009 Ananthakrishna

Chairman & C.E.O

Segmentwise Results for the quarter ended 31.12.2008

Rs. in Lakhs

		Unaudited				Audited
	Business Segments	3 months ended 31.12.2008	3months ended 31.12.2007	9 months ended 31.12.2008	9 months ended 31.12.2007	Year ended 31.03.2008
1	Segment Revenue
	Treasury	20604		50506		55416
	Corporate /Wholesale Banking	17994		48925		51856
	Retail Banking	21566		61441		69291
	Other Banking Operations	553		2003		3227
	Total	60717	47937	162875	132272	179790
2	Segment Results
	Treasury	10660		136		4544
	Corporate /Wholesale Banking	1155		3700		4132
	Retail Banking	6665		22873		24492
	Other Banking Operations	466		1675		2459
	Total	18946	11528	28384	30260	35627
	Unallocable expenses	499	430	1458	1304	1746
	Profit before tax	18447	11098	26926	28956	33881
	Capital Employed
	(a)Treasury Operations	70583		70583		61189
	(b)Corporate Banking	49649		49649		43138
	(c)Retail Banking	36640		36640		33678
	(d) Other Banking Operations	40		40		-45
	Total	156912	142237	156912	142237	137960
	Part B–Geographic Segments
	There is only one segment i.e. Domestic segment

Other Income

TOTAL INCOME (1+2)

Interest expended

Operating expenses (i+ii)

Employees Cost

Other operating expenses

Operating Profit before provisions & contingencies (3-6)

Provisions (other than tax) and Contingencies

Exceptional Items

Profit (+)/Loss (-) from Ordinary Activities before tax (7-8-9)

Tax Expense

Net Profit (+)/Loss (-) from Ordinary activities after Tax (10-11)

Extraordinary Items (net of tax expense)

Net Profit (+)/Loss (-) for the period (12-13)

Paid up equity share capital

Reserves excluding revaluation reserves (as per balance sheet of previous accounting year)

Analytical Ratios

Percentage of shares held by Government of India

Capital Adequacy Ratio (%)

Earning per share (EPS) (Rs)

NPA Ratios as on date