Karnataka Bank signs MoU with Tata Motors for vehicle loans

Mangalore based lender Karnataka Bank has entered into an Memorandum of Understanding (MoU) with Tata Motors to finance vehicles to the bank’s customers. The bank will also offer loans under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme to the eligible customers, and no collateral security or guarantee will be insisted for such loans.

On the standalone basis bank has reported a fall of 8.43% in its net profit to Rs 83.16 crore for the fourth quarter ended March 31, 2012, against net profit of Rs 90.82 crore for the corresponding period last fiscal. The interest earned by the bank has increased by 30.95% at Rs 868.28 crore during the quarter under review from Rs 663.07 crore in the year-ago period.