Karnataka Bank Ltd

Karnataka Bank Recommends Dividend Of Rs 4.00 per share The board of Karnataka Bank in its meeting held on 15 May 2013 has recommended dividend of Rs 4 per share for the year ended 31 March 2013.

Karnataka Bank gets ISO certification for its IT setup From National Quality Assurance Karnataka Bank has secured the coveted `ISO 27001:2005` certificate of registration from National Quality Assurance (NQA) for its three IT set-ups encompassing the information security management system (ISMS) at its data centre, near line site at Bangalore and information technology department including the DR site [IT & DR] at head office, Mangalore. NQA is an internationally leading assessment, verification and certification body accredited to the United Kingdom Accreditation Service (UKAS). ISO27001: 2005 is a global standard which specifies a well documented information security management system within the context of the organization`s overall business risks. It outlines the best practice for ensuring business continuity; minimize business damage by preventing and reducing the impact of security incidents in order to maximize business investments and opportunities. The said certificate is valid for a period of three years. The company made this announcement on 15 April 2013.

Karnataka Bank to open 26 Ultra Small Branches by March 2013 Karnataka Bank has planned to open 26 Ultra Small Branches (USBs) at allocated GPs (Grama Panchayaths) spread across India. The bank has so far opened 18 branches and 8 more USBs are proposed to be opened by 31 March 2013. Another 94 USBs are planned for FY 2013-14, thus taking the total number to 120 by March 2014. The bank is also opening an FLCC (Financial Literacy and Credit Counseling Centre) at Kundagol of Dharwad District for the exclusive benefit of rural India. The company made this announcement on 19 March 2013.

Karnataka Bank hikes deposit rates by 25 basis points Effective from 01 March 2013 Karnataka Bank has raised its interest rate on deposits by 25 basis points on all fresh retail term deposits on one year to two years maturity period. Thus, the rate of interest on deposits will move upwards from the present 9% per annum to 9.25% per annum. The new rate will be effective from 01 March 2013.

Karnataka Bank enters into distribution agreement with Reliance Capital Asset Management Karnataka Bank has entered into distribution agreement to sell mutual fund products of Reliance Capital Asset Management (RCAML) through the branches of the bank with effect from 12 February 2013.

Karnataka Bank - Opened First Ultra Small Branch On 27 December 2012 Karnataka Bank has announced that opened its first ultra small Branch at Byadanur village of Tumkur District on 27 December 2012.

Karnataka Bank gets `Operational Excellence Award` in ATM Service By National Payment Corporation Of India Karnataka Bank has been awarded with "Operational Excellence Award" in recognition of its excellent performance in ATMs and switch connected to NFS (National Financial Switch) ATM network. This national award is instituted by NPCI (National Payment Corporation Of India) to recognize the overall efficiency and performance of banks under NFS ATM network with specific reference to number of acquirer transactions, issuer transactions, ATM uptime, charge back efficiency, decrease in business declines, decrease in technical declines, settlement efficiency, general performance of ATMs, safety measures etc., besides effective complaint handling mechanism. Karnataka Bank is operating its ATM network under the brand name `Money Plant`. The bank has 430 ATMs across India and has plans to increase it to 500 by March 2013. The company made this announcement on 18 December 2012.

Karnataka Bank introduces revised Kisan Credit Card scheme for farmers Karnataka Bank has introduced the revised guidelines of Reserve Bank of India on Kisan Credit Card (KCC) scheme, which will help large section of farmers across the country. As per the scheme which is effective from 15th November 2012, farmers can avail working capital loan in the form of overdraft for raising various crops and maintaining their farm equipments and also term loan for meeting their investment credit requirements. The period of KCC is for 5 years and the farmers have the option to renew the overdraft every year with 10% increase in the limit. The overdraft facility is more useful to the farmers as it is an operative account and they can credit the sale proceeds of various crops to the account and utilize it when required. Bank has also planned to introduce ATM card enabled transactions to the farmers under Kisan Credit Card scheme as per RBI guidelines. Bank is targeting to disburse Rs 1,000 crore in agriculture sector during 2012-13 and Kisan Credit Card scheme is one of the important channels for disbursing the agriculture credit. As on date, bank has issued 17,791 Kisan Credit Cards to farmers with aggregate amount of Rs 202.21 crore. All the branches of the Bank are empowered to lend under the KCC scheme.

Karnataka Bank raises Rs 250 crore through issue of debenture On private placement basis Karnataka Bank has raised Rs 250 crore by issue of non-convertible subordinated debt instruments in the nature of debenture (lower tier 2 bonds) on private placement basis. The issue of bonds with a tenor of 10 years was opened for subscription on 22 October 2012 and closed on 12 November 2012. The Rs 125 crore issue with a right to retain oversubscription to the extent of Rs 125 crore received huge response from the investors resulting in the oversubscription by 100%. The bank capital to risk weighted assets ratio (CRAR) as on 31 March 2012 was 12.84% consisting of tier 1 capital of 10.86% and tier 2 of 1.98%. With the above issue of bonds, the capital funds of the bank have further improved which will enable the bank to further expand the credit portfolio in the coming days. The company made this announcement during the trading hours today, 19 November 2012.

Karnataka Bank launches current & savings accounts campaign Karnataka Bank has launched a special current account and savings bank account campaign. Under the said nation wide campaign from 15th November 2012 to 28th February 2013. Bank intends to open more than 5 lakh current & savings accounts by undertaking door to door canvass by its entire work force.

Karnataka Bank cuts base rate With effect from 10 November 2012 Karnataka Bank has reduced its base rate by 25 basis points with effect from 10 November 2012. The bank`s base rate now stands reduced to 10.75% p.a. from the earlier 11%. As a result, all its base rate linked loans get cheaper by 25 basis points. The said reduction is applicable to the existing loans and also for the future loans. This will enable retail and MSME customers to avail funds at reduced rates and to stay competitive in their market. Further, bank has now aggressively positioned its housing loan & car loan products by reducing the interest rates by 50 basis points. Thus the housing loan upto Rs 25 lakh will here-after be extended at the rate of 10.75% p.a. and for car loans revised interest is 11.25% p.a. Further, there is a corresponding reduction in the rate of interest on deposit also by 25 basis points. With this change, bank is offering interest of 9% p.a. for the deposits of one year to five years and senior citizens will have an additional benefit of 0.50%.

Karnataka Bank launches `KBL Mobile` Karnataka Bank has launched yet another technology based product, `KBL Mobile` on 25 September 2012 at Bangalore. P Jayarama Bhat, managing director & chief executive officer of Karnataka Bank has launched this new service in the presence of P Jairama Hande and Mahabaleshwara Bhat M S, general managers of the bank. The bank also launched its caller tune on this occasion. The company made this announcement during the trading hours today, 03 October 2012.

Karnataka Bank allots equity shares Under ESOS The board of Karnataka Bank in its meeting on 14 September 2012 has allotted 4973 equity shares of Rs 10 each fully paid up for cash upon exercise of stock options vested in the employees of the bank under the Karnataka Bank Employees Stock Options Scheme 2006.

Karnataka Bank MoU with National Collateral Management Services For warehousing services Karnataka Bank has entered in to a memorandum of understanding (MoU) with National Collateral Management Services (NCMSL) for warehouse receipt financing and collateral management services etc. The bank is financing against the godown receipts / cold storage receipts issued by NCMSL under the bank`s `KBL - Krishik Bhandar Scheme` at an attractive interest rate. Generally, during harvesting season the price of the agri produce will be at a lower level. Hence, the farmers can store their agri produce in the godowns / cold storages of NCMSL. In the off season the farmers can sell the produce in the market at a higher price. Hence, the farmers will be benefited by availing finance under this scheme. NCMSL will also ensure insurance coverage in respect of risks such as fire, burglary, earthquake, riots, malicious damage, war and flood, etc. The company made this announcement during the trading hours today, 18 September 2012.

Karnataka Bank appoints additional director The board of Karnataka Bank in its meeting on 14 September 2012 has appointed Ashok Haranahalli as additional director of the bank.

Karnataka Bank to hold board meeting On 14 September 2012 The board meeting of Karnataka Bank will be held on 14 September 2012 to consider raising of the capital funds including through rights issue.

Karnataka Bank bags two I.B.A. awards In private sector banks category Karnataka Bank has been conferred with `The I.B.A. Banking Technology Awards 2011" instituted by Indian Banks Association. The bank has been adjudged as the 2nd runner up under `Best risk management & security initiative` and also the 2nd runner up under `Best financial inclusion initiative` in the category of private sector banks.

Karnataka Bank gets award for costomer friendliness Karnataka Bank has announced that the bank has bagged one more national award. This time, the bank has been the runner ups` for the best banker for customer friendliness category among the midsized banks.

Karnataka Bank signs MoU with NABARD for consultancy service Karnataka Bank has entered in to a Memorandum of Understanding (MoU) with NABARD consultancy services (NABCONS). Mahabaleshwar M S, general manager of the bank and S N A Jinnah, chief general manager of NABARD signed the MoU in the presence of P Jayarama Bhat, managing director and chief executive officer of the bank and other senior officials of both the organization at the head office of Karnataka Bank, Mangalore. The MoU signed with Karnataka Bank would be operative for a period of 3 years. The agreement would entail collaboration between Karnataka Bank and NABCONS in providing consultancy services for the clients referred by Karnataka Bank for preparation of techno-economic appraisal reports, techno-economic feasibility reports, detailed project reports for investments in agriculture and allied activities viz hi-tech horticulture, floriculture, dairy, fisheries, warehousing, etc. The collaboration would also include services of NABCONS in the field of micro finance, women empowerment, training, capacity building, periodic monitoring etc.

Karnataka Bank reappoints managing director & CEO With effect from 14 July 2012 Karnataka Bank has announced that pursuant to the approval received from Reserve Bank of India under section 35B of the Banking Regulation Act, 1949, P Jayarama Bhat has been re-appointed as managing director & CEO of the bank for another three years period with effect from 14 July 2012.

S R Hegde ceases as director of Karnataka Bank With effect from 02 July 2012 Karnataka Bank has announced that S R Hegde, on attaining the upper age limit of 70 years, has relinquished his office as independent director of the bank with effect from 02 July 2012.

Karnataka Bank recommends dividend Of Rs 3.50 per share The board of Karnataka Bank in its meeting on 18 May 2012 has recommended dividend at the rate of Rs 3.50 per share for the year ended 31 March 2012.

Karnataka Bank to announce financial results Board meeting on 18 May 2012 The board meeting of Karnataka Bank will be held on 18 May 2012 to consider the audited financial results for the year ended 31 March 2012 and to recommend dividend.

RBI levies Rs 5 lakh penalty on Karnataka bank for failing to carry out proper due diligence on user appropriateness and suitability of derivative products RBI has levied a penalty of Rs 5 lakh on Karnataka Bank for failing to carry out proper due diligence on user appropriateness and suitability of products. Other reasons attributed for levy of penalty include failure to document the pricing, periodical valuation of products and quantifying financial risks in derivatives. RBI has also imposed a penalty of Rs 10 lakh (Rupees Ten Lakh only) on an unlisted entity - Credit Agricole - Corporate & Investment Bank. The penalty on Credit Agricole - Corporate & Investment Bank was imposed for failing to carry out proper due diligence on user appropriateness and suitability of products. Other reasons attributed for levy of penalty include the compliance function in the bank failing to ensure strict observance of all statutory provisions contained in various legislations, issued by the Reserve Bank in respect of derivative transactions.

Karnataka Bank recommends dividend Of Rs 3 per share The board of Karnataka Bank in its meeting on 23 May 2011 has recommended dividend at the rate of Rs 3 per share for the year ended 31 March 2011.

Karnataka Bank to announce financial results Board meeting on 23 May 2011 The board meeting of Karnataka Bank will be held on 23 May 2011 to consider the audited financial results for the year ended 31 March 2011 and to recommend dividend.

Karnataka Bank offers online trading services in alliance with Way2Wealth Brokers Karnataka Bank has entered into a strategic tie up with Way2Wealth Brokers to launch online trading facility.

Karnataka Bank allots equity shares Under ESOS The board of Karnataka Bank in its meeting on 24 January 2011 has allotted 15,270 equity shares of Rs 10 each fully paid up for cash upon exercise of stock options vested in the employees of the bank under the Karnataka Bank Employees Stock Options Scheme 2006.

Karnataka Bank to announce financial results Board meeting on 24 January 2011 The board meeting of Karnataka Bank will be held on 24 January 2011 to consider the unaudited financial results for the quarter ended 31 December 2010.

Karnataka Bank launches KBL-Empower Bio-Metric Smart Card On 20 October 2010. Karnataka Bank has launched KBL-Empower Bio-Metric Smart Card at Babbur Grama in Hiriyur Taluk of Chitradurga District on 20 October 2010.

Karnataka Bank appoints additional director With effect from 15 October 2010 The board of Karnataka Bank in its meeting on 15 October 2010 has appointed T. R. Chandrasekaran as additional director of the bank.

Karnataka Bank reaches a milestone Karnataka Bank has reached a landmark with its business turnover crossing Rs 40,000 crore. The bank which was incorporated in the year 1924 achieved the milestone with its consistent performance and progress over the years. The bank with its pan-India presence is eyeing a business turnover of Rs 45,000 crore for the current fiscal. The bank has 465 branches across India with 227 ATMs of its own. The bank is planning to take the number of branches to 480 and ATMs to 300 by end March 2011.

Karnataka Bank allots equity shares Under ESOS The board of Karnataka Bank in its meeting on 25 September 2010 has allotted 1,42,050 equity shares of Rs. 10 each to the employees, pursuant to the exercise of stock options vested in them under ESOS of the bank.

Karnataka Bank launches a new savings product for women Karnataka Bank has announced that the bank has launched a new product named KBL Vanitha exclusively for women. The new SB product for women is to encourage savings habit the womenfolk and also to allay the fear of managing their wealth.

Karnataka Bank to hold board meeting On 30 July 2010 The board meeting of Karnataka Bank will be held on 30 July 2010 to take record on the rights issue of the equity shares of the bank already approved by the shareholders.

Karnataka Bank fixes base rate At 8.75% Karnataka Bank has fixed the base rate at 8.75% as per Reserve Bank of India directive with effect from 01 July 2010.