Karnataka Bank's net profit up 5% at Rs 126 crore in September qtr

Karnataka Bank | Photo: Wikimedia Commons

Private sector Karnataka Bank on Thursday reported a moderate rise of 5.17 per cent in its net profit at Rs 125.61 crore in the second quarter ended September 2021.

The bank had posted a net profit of Rs 119.44 crore in the same quarter of the previous fiscal year.

Total income of the bank was down at Rs 1,725.15 crore in Q2 FY22, as against Rs 1,880.35 crore in Q2 FY21, Karnataka Bank said in a regulatory filing.

The interest income too came down to Rs 1,554.28 crore from Rs 1,603.71 crore.

Net interest income was up 10.83 per cent at Rs 637.10 crore from Rs 574.87 crore, the lender said.

On the asset front, the bank had impairment with the gross non-performing assets (NPAs) rising to 4.50 per cent of the gross advances at end-September 2021 from 3.97 per cent by the end of the same period a year ago.

In value terms, gross NPAs or bad loans rose to Rs 2,501.12 crore from Rs 2,188.80 crore.

Net NPAs increased to 2.84 per cent (Rs 1,546.26 crore) from 2.21 per cent (Rs 1,194.60 crore).

Provisions for bad loans and contingencies for the quarter, however, were down at Rs 243.20 crore from Rs 268.96 crore.

Bank's business turnover touched Rs 1.31 lakh crore as on September 30, 2021.

The deposits grew to Rs 76,922 crore and advances grew to Rs 54,468 crore, it said.

Capital adequacy ratio of the bank stood at 14.48 per cent as compared to 13.41 per cent as on September 30, 2020.

"The bank has been able to sail through the pandemic affected one more quarter with flying colours. The credit growth is back on track as we added net fresh credit of Rs 2,676.73 crore during this quarter with the quarterly growth rate of 5.17 per cent as against -0.20 per cent during the corresponding quarter of last year," Mahabaleshwara M S, Managing Director & CEO, Karnataka Bank, said.

The bank has been able to continuously maintain the PCR at above 70 per cent, he added.

Karnataka Bank stock closed at Rs 70.45 apiece on the BSE, down 3.23 per cent from their previous close.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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