Signals, Powered By EquityPandit
The Private sector Karnataka Bank released their quarterly financial report with a 20 per cent rise in its net profit at Rs. 111.86 crores for the quarter ended September 2018 on the back of healthy core income and lower provisioning for bad loans. Karnataka Bank had earlier reported a net profit of Rs 93.38 crores in the corresponding quarter of the previous fiscal year.
The Bank’s total income inclined to Rs 1,653.81 crore in the September quarter of 2018-19, from Rs 1,565.75 crore in the corresponding period of the previous fiscal. Bank’s earnings from interest or NII stood at Rs. 1,452.61 crores during the July-September quarter as against Rs 1,317.93 crore in September end quarter of 2017-18.
Mahabaleshwara M S, Managing Director and CEO, Karnataka Bank said, “The results are on the expected line as we have been able to declare a decent profit with more focus on asset quality and healthy growth. Asset quality has moderated and stress in the pipeline is also receding and that is good news going forward.”
“Expenditure is fully under control and a growth of 7.29 per cent in operating profit for the first half of current year is an indication of the robustness of the business portfolio,” he added.
The net non-performing assets (NPAs) were reportedly down to 3 per cent of the net advances, as against 3.04 per cent in the same period a year earlier. Net NPAs during the quarter under review stood at Rs 1,497.68 crores as against Rs 1,246.81 crores of the year-ago period.
Gross NPA ratio rose to 4.66 per cent (Rs 2,371.62 crore) against 4.13 per cent (Rs 1,715.70 crore). Bank’s provisioning for bad loans and contingencies for the quarter came down to Rs 193.22 crore as against Rs 225.98 crore.
