Karnataka Bank Q2 net profit up 20% at ₹112 cr
Karnataka Bank registered a net profit of ₹111.86 crore in the second quarter of 2018-19 against a profit of ₹93.38 crore in the corresponding period of the previous fiscal, recording a growth of 19.79 per cent during the period.
Speaking to BusinessLine after the meeting of the board of directors of the bank to approve the financial results, in Mangaluru, on Friday, Mahabaleshwara MS, Managing Director and CEO of the bank, said that there has been consistent reduction in gross non-performing assets (NPAs) compared to the last two quarters.
Gross NPA, which was at 4.92 per cent at the end of March, came down to 4.72 per cent by the end of June. It further come down to 4.66 per cent at the end of September.
Stating that the bank has lined up a number of measures for NPA resolution in Q3, Mahabaleshwara said this would help the bank improve its NPA status.
The net NPA of the bank stood at 3 per cent in Q2 of 2018-19 against 3.04 per cent in the corresponding quarter of 2017-18.
The net interest income (NII) of the bank stood at ₹467.71 crore (₹440.24 crore), and the other income at ₹201.20 crore (₹247.82 crore) during the second quarter.
The total business of the bank stood at ₹1,13,854 crore (₹97,621 crore) at the end of the second quarter of 201819, registering a growth of 16.63 per cent. The deposits of the bank increased to ₹63,885 crore (₹56,558 crore), and advances to ₹49,970 crore (₹41,062 crore) during the period.
Mahabaleshwara said the bank achieved an all-time high credit-deposit (CD) ratio of 78.22 per cent during Q2 of 2018-19.