KARNATAKA BANK LIMITED

Regd & Head Office : Mangalore 575002

UNAUDITED QUARTERLY FINANCIAL RESULTS FOR THE THREE MONTHS ENDED 31.12.2009

Rs in lakh

		UNAUDITED				AUDITED
		Quarter ended		Nine months ended		Year ended
		31.12.2009	31.12.2008	31.12.2009	31.12.2008	31.03.2009
1	Interest Earned (a+b+c+d)	52762	51231	149927	143599	194876
a)	Interest/Discount on advances/bills	36626	37507	102132	103875	139093
b)	Income on Investments	16110	13513	47705	39092	54519
c)	Interest on balances with Reserve Bank of India and other inter bank funds	2	154	51	446	552
d)	Others	24	57	39	186	712
2	Other Income	6219	9486	24812	19276	32179
3	TOTAL INCOME (1+2)	58981	60717	174739	162875	227055
4	Interest expended	42446	36975	129415	102735	144383
5	Operating expenses (i+ii)	9565	9911	28524	26069	34651
i)	Employees Cost	5533	6382	15938	15125	19041
ii)	Other operating expenses	4032	3529	12586	10944	15610
6	TOTAL EXPENDITURE ((4+5) excluding provisions & Contingencies)	52011	46886	157939	128804	179034
7	Operating Profit before provisions & contingencies (3-6)	6970	13831	16800	34071	48021
8	Provisions (other than tax) and Contingencies	6417	-4616	8691	7145	8050
9	Exceptional Items	0	0	0	0	0
10	Profit (+)/Loss (-) from Ordinary Activities before tax (7-8-9)	553	18447	8109	26926	39971
11	Tax Expense	-3108	9521	-1193	8570	13301
12	Net Profit (+)/Loss (-) from Ordinary activities after Tax (10-11)	3661	8926	9302	18356	26670
13	Extraordinary Items (net of tax expense)	0	0	0	0	0
14	Net Profit (+)/Loss (-) for the period (12-13)	3661	8926	9302	18356	26670
15	Paid up equity share capital (Face Value Rs 10/-)	12185	12157	12185	12157	12158
16	Reserves excluding revaluation reserves (as per balance sheet of previous accounting year)		-			144544
17	Analytical Ratios
i)	Percentage of shares held by Government of India	Nil	Nil	Nil	Nil	Nil
ii)	Capital Adequacy Ratio (%) i) Basel –I ii) Basel - II	12.33 12.67	13.58 NA	12.33 12.67	13.58 NA	13.54 13.48
iii)	Earning per share (EPS) (Rs) a) Basic EPS	3.01*	7.35*	7.65*	15.12*	21.96
	b) Diluted EPS before Extraordinary items (net of Tax expense)	2.99*	7.35*	7.61*	15.11*	21.96
	a) Basic EPS	3.01*	7.35*	7.65*	15.12*	21.96
	b) Diluted EPS after Extraordinary items (net of Tax expense) * Not Annualised	2.99*	7.35*	7.61*	15.11*	21.96
iv)	NPA Ratios as on date a) Gross NPA Net NPA	61227 23315	45122 16752	61227 23315	45122 16752	44320 11610
	b) % of Gross NPA % of Net NPA	4.50 1.76	3.68 1.40	4.50 1.76	3.68 1.40	3.66 0.98
	c) Return on Assets- * Not Annualised	0.14*	0.41*	0.38*	0.88*	1.25
18	Public Shareholding -No of Shares -Percentage of Share holding	121835718 100%	121564108 100%	121835718 100%	121564108 100%	121574878 100%
19	Promoters and Promoter group shareholding a) Pledged /encumbered -Number of shares - Percentage of shares(as a % of the total shareholding of promoter and promoter group) -Percentage of shares (as a % of the total share capital of the company. b) Non-encumbered -Number of shares - Percentage of shares(as a % of the total shareholding of promoter and promoter group) -Percentage of shares (as a % of the total share capital of the company.	NA NA NA NA NA NA	NA NA NA NA NA NA	NA NA NA NA NA NA	NA NA NA NA NA NA	NA NA NA NA NA NA

Notes: 1.The Board of Directors has taken the above financial results for the quarter ended 31^st December 2009 on record at their meeting held on 29^TH January 2010.

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. 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	34	34	Nil

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

6.Subsequent to December 31, 2009, Bank has issued & allotted 1,21,15,564 equity shares of Rs.10/- each at a price of Rs.132.75 per share, including the premium of Rs.122.75 per share aggregating Rs.160.83 crore to qualified institutional buyers under qualified institutional placement.

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

By order of the Board

Place: Mangalore

Date: 29^th January 2010 P Jayarama Bhat

Managing Director & C.E.O.

Segmentwise Results for the quarter ended 31.12.2009 Rs in Lakhs
Business Segments	3 months ended 31.12.2009	3 months ended 31.12.2008	9 months ended 31.12.2009	9 months ended 31.12.2008	Year ended 31.03.2009
Segment Revenue
Treasury	18239	20604	62259	50506	75351
Corporate /Wholesale Banking	14910	17994	48709	48925	62908
Retail Banking	24706	21566	60653	61441	85046
Other Banking Operations	1126	553	3118	2003	3750
Total	58981	60717	174739	162875	227055
Segment Results
Treasury	-4845	10660	-6209	136	3415
Corporate /Wholesale Banking	-4290	1155	-4880	3700	2172
Retail Banking	9379	6665	18270	22873	33172
Other Banking Operations	879	466	2563	1675	3196
Total	1123	18946	9744	28384	41955
Unallocable expenses	570	499	1635	1458	1984
Profit before tax	553	18447	8109	26926	39971
Capital Employed
(a)Treasury Operations	78729	70583	78729	70583	76562
(b)Corporate Banking	52657	49649	52657	49649	47277
(c)Retail Banking	35077	36640	35077	36640	32783
(d) Other Banking Operations	12	40	12	40	81
Total	166475	156912	166475	156912	156703
Part B - Geographic Segments
There is only one segment i.e. Domestic segmment