Latest news with #KarnatakaBank
New Indian Express
3 days ago
- New Indian Express
Rs 8.90 crore cyber fraud busted in Andhra's Kakinada district
KAKINADA: The Kakinada district police have busted a massive cyber fraud racket and arrested three individuals involved in fraudulent transactions amounting to Rs 8.90 crore through 48 bank accounts. Providing details on Friday, District Superintendent of Police G Bindu Madhav said efforts were underway to apprehend the mastermind behind the fraud, Putta Ram, who is currently operating from Dubai. The investigation began after Karra Lova Krishna, a resident of Sambamurthynagar in Kakinada, lodged a complaint at the Kakinada I Town police station on January 31, 2025. Krishna reported that he was lured into opening a bank account with the promise of receiving Rs 5,000 per month. 48 bank accounts involved in fraud identified, frozen Due to his limited understanding of banking procedures, he handed over his bank passbook, cheque book, ATM card, and SIM card to the individuals who made the offer. After months of not receiving the promised payment, Krishna visited the Karnataka Bank branch in Kakinada. There, the bank staff informed him that nearly Rs 50 lakh had been transacted through his account. Alarmed, he immediately filed a police complaint. Station Inspector Naga Durga Rao escalated the matter to SP G Bindu Madhav, who formed three special teams under the supervision of Kakinada SDPO Manish Devaraj Patil. The teams were led by Kakinada Crime CI V Krishna, Peddapuram CI R Ankababu, and I Town CI Naga Durga Rao.
India Gazette
3 days ago
- India Gazette
Andhra Pradesh: Rs 9 crore cyber fraud busted in Kakinada, two held
Kakinada (Andhra Pradesh) [India], June 6 (ANI): Two youths were arrested for their involvement in cyber crimes, with authorities uncovering illegal transactions amounting to Rs nine crore carried out through 48 bank accounts, as per Kakinada district police. During the operation, police seized bank passbooks, diaries, and two mobile phones. District SP Bindu Madhav shared details of the case. Kakinada District Police have arrested two youths involved in cyber crimes, who opened bank accounts in the names of innocent individuals and used them for illegal transactions. Authorities identified 48 such bank accounts across multiple banks, through which around Rs nine crore in illicit financial transactions were carried out. District SP G Bindu Madhav stated that this is likely the first time in the state that cyber fraud of this scale has been successfully thwarted. Kakinada SP Bindu Madhav held a press conference on Friday at the district police office and disclosed all details about the case. The two arrested individuals have been identified as Narni Satish Chandra and Dasari Veera Venkata Satyanarayana, both from Samarlakota. Two other main accused, Putta Ramu and Uday Kiran, are currently absconding. A Look-Out Circular (LOC) has been issued against Ramu. The investigation began based on a complaint by Korra Lovakrishna, a resident of Sambamurthy Nagar, Kakinada. Lovakrishna had opened a bank account at Karnataka Bank in the Kakinada One Town Police Station limits on January 31, 2025, with the help of Satish Chandra, who promised bank loans and a monthly payment of Rs 5,000. Lovakrishna, along with his friends, handed over their bank passbooks, ATM cards, chequebooks, and mobile SIM cards to Satish without proper understanding of the consequences. When no loans or payments were received even after several days, Lovakrishna grew suspicious and questioned Satish, who gave vague and evasive answers. Upon checking with Karnataka Bank, Lovakrishna discovered that his account had been used for illegal transactions totalling Rs 50 lakh. Alarmed, he filed a complaint at the Kakinada One Town Police Station. Based on the complaint, a case was registered, and three special investigation teams were formed. Following an investigation, both Satish Chandra and his associate Dasari Veera Venkata Satyanarayana were arrested, while Uday Kiran and Putta Ramu remain absconding. According to SP Bindu Madhav, the accused had been targeting naive and financially vulnerable people, getting them to open bank accounts under the guise of providing loans and monetary benefits. These accounts were then used for large-scale cyber fraud, with operations linked to Bengaluru and Dubai. In total, 48 bank accounts were used across Karnataka Bank, HDFC, IDBI, and Chaitanya Godavari Grameena Bank, involving Rs 9 crore in fraudulent transactions. Approximately 50 victims have been identified in the Samarlakota and Kakinada areas. SP Bindu Madhav warned that cybercriminals are now specifically targeting the poor and unaware individuals in society, enticing them with promises of easy money and bank loans. She urged the public to be vigilant and not to fall for fraudulent offers. Renting out bank accounts or giving access to them can jeopardise one's entire life, she said. SP Bindu Madhav appealed to people to not trust fraudsters or their misleading promises and to stay alert. Anyone approached with such suspicious proposals should immediately report to the local police station. Police officers, including Kakinada DSP Manish Devaraj Patil, Two Town CI V Naga Durgarao, Peddapuram Crime CI R Ankababu, and Kakinada Crime CI V Krishna were present during the press meet. (ANI)
Time of India
28-05-2025
- Business
- Time of India
Axis Securities maintains Buy on Karnataka Bank, target price Rs 270
Karnataka Bank's key products/revenue segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2680.10 crore, up 5.43% from last quarter Total Income of Rs 2542.02 crore and up 2.30% from last year same quarter Total Income of Rs 2619.97 crore. The bank has reported net profit after tax of Rs 252.62 crore in the latest quarter. Investment Rationale With investments made and strengthening processes and teams ripe to yield results, Axis Securities expects (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Axis Securities has maintained a Buy call on Karnataka Bank with a target price of Rs 270. The current market price of Karnataka Bank Ltd. is Rs 199.2. Karnataka Bank, incorporated in 1924, has a market cap of Rs 7501.66 Bank's key products/revenue segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2680.10 crore, up 5.43% from last quarter Total Income of Rs 2542.02 crore and up 2.30% from last year same quarter Total Income of Rs 2619.97 crore. The bank has reported net profit after tax of Rs 252.62 crore in the latest investments made and strengthening processes and teams ripe to yield results, Axis Securities expects Karnataka Bank to resume its growth journey, though gradually from FY26E onwards. Focus on granular retail deposits, particularly CASA deposits, remains unabated. We believe KTKBANK has multiple levers in place to protect and improve its margins over the medium term, thereby enabling the bank to improve RoAs. With a majority of the investments already made, Opex growth is expected to remain modest, driving cost ratios downwards. The brokerage expects RoA/RoE to remain at 1.1-1.2%/10-13% over FY25-27E, driven by the aforementioned factors. Growth delivery on guided lines, and sustenance remain key levers for a meaningful re-rating in the stock. Axis Securities maintains a BUY recommendation on the stock on inexpensive valuations. They value the stock at 0.75x FY27E ABV to arrive at a target price of Rs 270/share, implying an upside of 38% from the CMP. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Mint
27-05-2025
- Business
- Mint
Karnataka Bank Prime SBI Credit Card: Step-by-step application process
The Karnataka Bank provides for a credit card in collaboration with SBI Cards. The card is known as the Karnataka Bank SBI Card PRIME. This is a premium credit card developed for aspirational credit card users who are seeking a blend of rewards and lifestyle benefits. This card provides advantages such as reward points on various expenditures, milestone based gift vouchers, complimentary lounge access etc. You can avail this credit card and make the most of its benefits by following just four simple steps Eligibility criteria Age: Aspirational applicants must be between 21 and 70 years old. Aspirational applicants must be between 21 and 70 years old. Income: A stable annual income is mandatory, generally a net monthly income of ₹ 50,000 or more. A stable annual income is mandatory, generally a net monthly income of 50,000 or more. Credit score: A good credit score, between 750 and 900 ideally, can significantly boost chances of approval. A good credit score, between 750 and 900 ideally, can significantly boost chances of approval. Residency: The applicant must be an Indian citizen with valid address proof such as an Aadhaar card, voter ID document etc. Note: The eligibility discussed above is illustrative in nature. Refer to the official website of Karnataka Bank for more details and updated terms and conditions. Visit the official website: Reach out to the Karnataka Bank SBI Card PRIME page to initiate the process of application submission. Click on 'Apply Now' option: This will redirect you to the SBI Card application portal where the entire application will be filled and submitted. Fill in the application form: Provide necessary personal and financial details as requested and submit the online application. Keep basic documents such as Voter ID, Aadhaar card etc., handy while submitting the form. Submit required documents: Upload documents such as identity proof, address proof, and income proof. For the same you must have digitally scanned copies of your essential documents such as PAN card, Aadhaar card, Voter ID card etc. Annual Fee: ₹ 2,999 + GST with a waiver on annual spends above ₹ 3 lakhs. 2,999 + GST with a waiver on annual spends above 3 lakhs. Welcome gift: E-Gift voucher worth ₹ 3,000 from select brands as soon as you avail the card. E-Gift voucher worth 3,000 from select brands as soon as you avail the card. Reward points: 20 points per ₹ 100 on utility bill payments; 10 points per ₹ 100 on dining, groceries, movies and departmental stores. 20 points per 100 on utility bill payments; 10 points per 100 on dining, groceries, movies and departmental stores. Lounge access: 4 complimentary international and 8 domestic airport lounge visits per year. Note: The features discussed above are illustrative in nature. For the updated terms, conditions and features refer to the official website of Karnataka Bank. Milestone rewards: E-Gift vouchers worth ₹ 1,000 on quarterly spends of ₹ 50,000 and ₹ 7,000 on annual spends of ₹ 5 lakh. E-Gift vouchers worth 1,000 on quarterly spends of 50,000 and 7,000 on annual spends of 5 lakh. Fuel surcharge waiver: 1% waiver on transactions between ₹ 500 and ₹ 4,000, capped at ₹ 250 per month. 1% waiver on transactions between 500 and 4,000, capped at 250 per month. Fraud liability cover: Complimentary cover of ₹ 1 lakh. Note: The additional benefits discussed above are illustrative in nature. For the updated terms, conditions and additional benefits refer to the official website of Karnataka Bank. For any more updates, clarifications and details on how to apply visit the official website of Karnataka Bank. You can also discuss your doubts and problems with the designated customer service team of Karnataka Bank by reaching them out on the number: 1800 425 1444. Disclaimer: The features, benefits, and eligibility criteria mentioned above are subject to change without prior notice. The customer care number discussed above is also prone to updates, do verify the latest information on the official Karnataka Bank website.
The Wire
26-05-2025
- Business
- The Wire
Open War in Karnataka Bank as CEO and Executive Director Defy Board
Tucked away in the notes to the 4QFY2025 accounts of Karnataka Bank, a century-old regional private sector bank which once enjoyed a conservative reputation, is a very alarming note. It should have raised huge corporate governance concerns among stakeholders and even more so the Reserve Bank of India (RBI), the banking regulator, yet it seems to have passed virtually unremarked. The statutory auditors of the bank, Ravi Rajan and Co. LLP and RGN Price and Co., stated that the bank had incurred Rs 15.3 mn expenditure beyond the delegated powers of the whole-time directors, which expenditure was not approved and ratified by the board. The break-up is Rs 11.6 mn in connection with engaging consultants, and Rs 3.7 mn revenue and capital expenditure. The whole-time members of the board are Srikrishnan Hari Hara Sarma, Managing Director and Chief Executive Officer (CEO) and Sekhar Rao, Executive Director (ED). It said that the said amounts would have to be recovered from these two gentlemen. Auditors' Comment in Karnataka Bank's 4QFY2025 Results Source: Karnataka Bank While the amounts mentioned are not large, the fact of such expenditure exceeding the designated powers of the CEO and ED, and of the board not ratifying the said expenditure, has great significance for corporate governance, and is a stark symptom of the storm raging within the Karnataka Bank boardroom. Pertinently, as per the bank's disclosure, the board meeting which considered finalising the accounts for 4QFY2025 and for FY2025 was unduly delayed , resulting in the postponement in timing of the analysts' conference call which was held on the same date. In response to an analyst's query on the issue of this expenditure not ratified by the board, the CEO on the 4QFY2025 conference call said ( 1:14:18 ), 'It is a very simple matter… the amounts are very, very insignificant, it is just the governance part which the bank had to take this into account if there is anything that is incurred beyond the delegated authority, obviously there are explanations and making sure these are ratified and bank has to make sure that the bank has a conclusive part related to that. Which is why it is a simple matter with emphasis EOM which is the normal part and normal course of business and the amounts are not at all large in this… '[Responding to a further query on whether the bank has adequate processes]…we do have a policy we do have a process etc. but there was some kind of an interpretation or ambiguity of the policy which has been corrected already and we will enforce that it will not happen again.' In response to a query sent by this analyst, Karnataka Bank stated, 'The matter is under discussion at the Board level as the amounts are only estimations from the statutory auditors. The quantum and justifications for the same will be identified and substantiated only after the conclusion of the discussions with the Board. The Whole-Time Directors would be explaining to the Board the details with respect to the above. There have been no such prior instances.' While the auditors have taken pains to specify the quantum, the bank claims the amounts to be mere 'estimations.' The bank's statement that 'there have been no such prior instances' in all likelihood refers to no such instances in the bank's history of the board not approving the expenditure and demanding that the whole-time directors reimburse the expenditure to the bank. Even though the CEO may say 'the amounts are very, very insignificant', the issue is far from being a 'simple matter'. Banking is a highly regulated industry and bank boards have clear-cut policies on the approval powers of all the staff, which have to be followed. As the CEO and ED report to the board of directors, they have to be in compliance with the powers delegated to them by the board. Any staff exceeding their powers and not getting it approved by the seniors is considered a major offence. Even in the rare case of the CEO/ED exceeding their powers, if the amounts were indeed insignificant, the board would caution the executives and ratify the decision. But in this case the board of Karnataka Bank has insisted on not ratifying the expenditure, and has apparently not objected to the auditors' comments in the accounts. Most managements bend backwards to implore auditors not to qualify the accounts or pass adverse comments in them, but in this case it appears the board did not mind that the auditors were highlighting this 'insignificant amount'. The whole-time directors' conduct and the auditors' comment indicates that the CEO and the ED may be repeat offenders. In all probability they have been cautioned earlier by the board, and they have continued to exceed their powers in defiance of the board of directors. If this is the case, their persistent misconduct would be a very serious offence by the two highest executive officers in Karnataka Bank. In any professional organisation, especially a bank, which manages the savings of the public, authority and powers are delegated at every level. Executives, especially senior executives, cannot exercise powers not delegated to them. These powers are exercised not by divine right, but can be taken away or modified by the higher authority. When the CEO and ED defy the board of directors, which is the highest authority in the organisation, and the auditors mention it in the accounts, which are for public viewing, it undermines discipline in the organisation. This may prove disastrous in a bank, which operates in a highly sensitive part of the economy. This is the reason why banking is heavily regulated, and the RBI has introduced many norms pertaining to corporate governance. When the two highest executives of a bank brazenly defy the board, what signals does it send to the rest of the bank and the industry? One of the costs which the board has insisted be clawed back from the CEO and ED was the unauthorised appointment of a Deputy General Manager (DGM) by the whole-time directors. On April 8, 2025 a Deputy General Manager (DGM), product-head assets and co-lending, and a designated member of the senior management, resigned for personal reasons. He had joined the bank only three months earlier on January 9, 2025. Karnataka Bank's response to a query sent by this analyst acknowledges that this appointment was not ratified by the board and hence the individual had to resign. However, the bank also acknowledges that the individual was reappointed at an 'appropriate level fully adhering to the recruitment and compensation policies of the Bank.' The concerned individual was reappointed in the same department as an Assistant General Manager (AGM), i.e. one level below DGM a few days after he resigned from the bank. Pertinently, the appointment as an AGM does not require board approval, as the post is not considered senior management in Karnataka Bank. The issue here is that when a higher authority has rejected the appointment of an individual, can a lower authority reappoint the same individual at a lower grade? Although appointment as an AGM does not require the approval of the board, in this case, since the board had specifically rejected the candidature, should it not have been informed that the bank is reemploying the same individual? The reappointment displays an attitude on the part of the CEO and the ED, indicating that they wanted to directly confront the board of directors, the higher authority. This analyst has been a vocal critic of the non-performance of directors in many banks and companies in the financial sector. Boards have turned a blind eye to many misdeeds by the senior executives, and often made a display of waking up only after the organisation suffered losses. In demanding that the amount be recovered from the CEO and ED, the bank's Nomination and Remuneration Committee (NRC) has played a pivotal role in recommending this course of action to the board of directors, which has approved the decision of its sub-committee. It is commendable that the board of directors at Karnataka Bank has taken a firm stand against the CEO and ED, and that, by not approving the expenditure, has permitted the senior executive leadership's deviant behaviour to be recorded by the auditors and released in the public domain. Srikrishnan Hari Hara Sarma took charge as the MD and CEO of Karnataka Bank on June 9, 2023 for a period of 3 years, while Sekhar Rao was appointed as the ED of the bank on February 1, 2023 for a period of 3 years. The bank's performance under their leadership since 2QFY2024 (from quarter of July-September 2023) is a consistent downward trajectory in key operating metrics. Karnataka's Bank performance in the past 7 quarters reveals a decline in net interest income, operating profit, net profit, net interest margin (NIM), ROE and ROA. In 1QFY2025, the bank received a one-time significant amount of interest on income tax refund, which propped up the numbers for that quarter. What is unusual in the bank's performance is that the figure of gross loans has continued to rise, while the NIM and net interest income have declined. It is evident that the bank's growth in loans is having an adverse impact on its profits and profitability. Karnataka Bank's Quarterly Key Financial Performance 4QFY25/2QFY24 (%) 2QFY24 3QFY24 4QFY24 1QFY25 2QFY25 3QFY25 4QFY25 Change Cost of Deposits 5.29 5.40 5.52 5.51 5.54 5.64 5.79 0.50 Yield on Loans 10.09 9.90 9.82 9.52 9.55 9.37 9.43 -0.66 NIM 3.62 3.46 3.30 3.54 3.23 3.02 2.98 -0.64 Cost-to-Income 51.30 53.18 60.12 52.80 58.30 60.09 68.78 17.48 Credit Cost 0.17 0.25 0.20 0.11 0.09 0.12 0.05 -0.12 ROE 15.15 14.26 10.64 14.45 11.63 9.63 8.56 -6.59 ROA 1.25 1.18 0.92 1.38 1.13 0.92 0.81 -0.44 (Rs mn) Interest Income 20,266 21,126 22,005 22,780 22,341 22,430 22,585 2,319 Interest Expense 12,042 12,850 13,665 13,746 14,006 14,502 14,778 2,736 Net Interest Income 8,224 8,276 8,340 9,034 8,335 7,928 7,807 -417 Other Income 2,496 3,261 4,194 2,790 2,699 2,990 4,216 1,720 Total Income 10,720 11,537 12,534 11,824 11,034 10,918 12,023 1,303 Staff Cost 3,072 3,363 4,397 3,229 3,530 3,460 5,284 2,213 Other Overheads 2,427 2,772 3,139 3,009 2,900 3,127 2,986 559 Total Opex 5,499 6,135 7,536 6,237 6,429 6,587 8,270 2,772 Operating Profit 5,222 5,402 4,998 5,587 4,605 4,331 3,753 -1,469 Provisions Bad debts etc 1,199 1,444 1,847 403 313 838 311 -888 Tax 720 647 407 1,180 930 657 916 196 Net Profit 3,303 3,311 2,744 4,004 3,362 2,836 2,526 -777 Gross Loans 6,69,360 6,97,410 7,30,020 7,54,550 7,53,160 7,78,600 7,79,590 1,10,230 Source: Karnataka Bank A possible explanation for this is that the growth in loans is an optical illusion, as they are growing only at the quarter end, while the average weekly loan (not disclosed) growth may be stagnant. Added to this dismal performance, the bank's operating cost is steadily rising as it attempts to build a digital platform for retail loans, putting further pressure on profits. The only consolation is growth in 'other income' on account of third party selling and declining credit costs. The bank had an asset quality issue which had been adequately provided for in the period prior to the entry of the current executive leadership, and the bank is currently benefitting from the recoveries and upgrades of the erstwhile bad loans. Defending its financial performance, Karnataka Bank said the following to this analyst, 'The Bank is undergoing major transformative steps that require capital and investments. During the transformation process, there will be an interim impact on many financial metrics, some of which have steadily improved as of March 31, 2025. This has been communicated in the Q4 FY25 earnings call post publishing results.' The problem is that there is no definite time line provided by the bank for when the financial metrics would turn around. Moreover, the tenures of the CEO and the ED are for 3 years from their date of appointment (2023), and even by the end of their second year the deterioration has continued. The likelihood of the bank's performance improving in their final year appears bleak. Karnataka Bank's experiment in getting its top executive leadership from outside the bank has proved to be less than stellar. Profits and profitability have been steadily declining, but worse, corporate governance at the highest executive level has reached its nadir. The bank's CEO and ED are exceeding their delegated authority in brazen defiance of the board of directors. It is unprecedented not only in Karnataka Bank's own history, but in banking, that the executive leadership openly defies the board of directors, and that the latter refuses to approve and ratify certain expenditure undertaken by the executive and demands that the CEO and ED reimburse the bank for these unauthorised expenses. No institution can allow executives to continue when such information is in the public domain, as it will send a signal to the entire staff of the bank and the wider public that exceeding one's powers and defying higher authority will be tolerated and condoned. Once the auditor mentions such malpractices, no institution, least of all a bank, can tolerate the continuance in office of such executives. The auditors' comment has sealed the fate of Karnataka Bank's whole-time directors. There is no place for the Karnataka Bank CEO and ED in any boardroom, as they have no respect for their higher authority, and have lost the confidence of the board of directors. Hemindra Hazari, is a commentator with over 30 years' experience in the Indian capital markets. Disclosure note: I, Hemindra Kishen Hazari, am a Securities and Exchange Board of India (SEBI) registered independent research analyst ( Regd. No. INH000000594 ), BSE Enlistment No. 5036 . Regd. Address 8 Maheshwar Niketan, 5B Pedder Rd Mumbai 400026. Email: hkh@ Mobile. +91 9004089333. Investment in securities market are subject to market risks. Read all the related documents before investing. Registration granted by SEBI, enlistment of BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The securities quoted are for illustration only and are not recommendary. Views expressed in this Insight accurately reflect my personal opinion about the referenced securities and issuers and/or other subject matter as appropriate. This Insight does not contain and is not based on any non-public, material information. To the best of my knowledge, the views expressed in this Insight comply with Indian law as well as applicable law in the country from which it is posted. I have not been commissioned to write this Insight or hold any specific opinion on the securities referenced therein. This Insight is for informational purposes only and is not intended to provide financial, investment or other professional advice. It should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security.
