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KARNATAKA BANK Q1 NET PROFIT AT Rs 106.08 CRORES

Karnataka Bank has posted a Net Profit of Rs 106.08 crores, during Q1 of FY 22 as against Rs 31.36 crores recorded during the sequential previous quarter i.e Q4 FY 21. Hence, Sequentially on a quarter on quarter basis it was higher by 238.26% over the 4th quarter ended March - 21. However, on year on year basis the profit declined by 45.98%, mainly on account of decreased treasury income.

In the virtual Meeting of the Board of Directors held today at Bank’s Head Quarters Mangaluru, the Board has approved the financial results for the quarter ended June 30, 2021.

The operating profit of the Bank was at Rs 414.22 crore as on 30-06-2021 as against Rs 383.69 crore of Q4 of FY 21 and the Net Interest Income was at Rs 574.79 crore for the quarter ended 30-06-2021 as against Rs 459.14 crore for Q4 FY 21.

Further, as on 30-06-2021 the business turnover of the Bank has touched Rs 1,28,005.99 crore, with deposits of Rs 76,214.78 crore and advances of Rs 51,791.21 crore.

Gross NPAs declined to 4.82% as at 30-06-2021, compared to 4.91% in the sequential previous quarter i.e Q4 of FY 21. GNPAs in absolute terms declined to Rs 2,549.06 crore during Q1 of FY 22 from Rs 2,588.41 crore (Q4 of FY 21) and Rs 2,557.64 crore (Q1 of FY 21). Similarly Net NPAs [NNPAs] also declined to 3.00 % from 3.18%. In absolute terms NNPAs declined to Rs 1,552.95 crore during Q1 of FY 22, from Rs 1,642.10 crore (Q4 of FY 21) and Rs 1,630.65 crore (Q1 of FY 21).

The Capital Adequacy Ratio of the Bank has further improved to 14.58% as compared to 13.44 % as on 30-06-2020.

Commenting on the Q1 results of the Bank, Shri Mahabaleshwara M. S., Managing Director & CEO of the Bank, said that “Inspite of the hardships posed by the second wave of COVID 19 pandemic, Bank has been able to continue its satisfactory performance during the first quarter of the current year also. Significant improvement in asset quality as evidenced by the decline in GNPAs to 4.82 % from 4.91% and net NPAs to 3.00% from 3.18 % as at 31-03-2021, coupled with improved NII, NIM, PCR etc are testimony for the successful handling of the impact of the pandemic. The reduction in net profit on year on year basis is mainly on account of decline in treasury gains, which is dependent on the yield movements. Compared to the sequential previous quarter (Q4 of FY 21) the advances have shown marginal increase and is expected to consolidate further during the second quarter of the current year. Hence, the core business is expected to do well going forward, besides further improving the asset quality. Further, in today’s Board, we have also deliberated about capital augmentation through QIP and the process would be taken forward after the due approval of the shareholders".

PERFORMANCE HIGHLIGHTS

[Rs.in crore]

Parameters Q1 FY 22 Q4 FY 21 % change / Variation Q1 FY 21 YoY % change / Variation
Net Profit 106.08 31.36 238.27 196.38 - 45.98
Operating Profit 414.22 383.69 7.96 677.04 - 38.82
Total Income 1,759.41 1,790.70 - 1.75 2,134.63 - 17.58
Net Interest Income 574.79 459.14 25.19 535.12 7.41
Other Income 235.91 373.21 - 36.79 518.92 - 54.54
Net Interest Margin (%) 2.98% 2.41% + 57 bps 2.89% + 9 bps
Return on Assets (%) 0.49% 0.15% + 34 bps 0.93% - 44 bps
Gross NPA % 4.82% 4.91% - 9 bps 4.64% + 18 bps
CRAR (%) [Basel III] 14.58% 14.85% - 27 bps 13.44% + 114bps
CD Ratio (%) 67.95% 68.33% - 38 bps 75.44% - 749 bps
Deposits 76,214.78 75,654.86 0.74 71,853.98 6.07
Advances 51,791.21 51,693.70 0.19 54,209.50 - 4.46
Business Turnover 1,28,005.99 1,27,348.56 0.52 1,26,063.48 1.54