On Tuesday, Karnataka Bank reported a 13 per cent increase in its net profit at Rs 119.44 crore for the quarter ended on 30 September, 2020 against Rs 105.91 crore for the previous year period.
The bank in a regulatory filing said that during the quarter its total income grew to Rs 1,933.52 crore as compared to Rs 1,902.41 crore in the year-ago period. Its interest income fell from Rs 1,629.64 crore to Rs 1,603.71 crore and income from other sources rose to Rs 329.81 crore which was Rs 272.77 crore in Q2FY20.
The private lender has witnessed an improvement in its asset quality, as the gross Non-Performing Assets (NPAs) fell 3.97 per cent of the gross advances at Rs 2,188.80 crore, compared to 4.78 percent at Rs 2,594.27 crore in same period previous fiscal. Net NPAs or bad loans were down 2.21 per cent at Rs 1,194.60 crore from 3.48 per cent at Rs 1,863.11 crore in the quarter ended on 30 September, 2019.
The bank has been successfully overcoming the impact of COVID-19 pandemic as the retail advances and mid corporate advances grew 8.53 per cent and 16.52 per cent, respectively. The share of CASA (Current and Savings Account) deposits grew to 29.17 per cent of total deposits.