Loading

KARNATAKA BANK POSTS A NET PROFIT OF Rs.87.38 CRORES UP BY 27.52 %

Karnataka Bank has posted a net profit of Rs.87.38 crore for the third quarter of current financial year against Rs.68.52 crore for the corresponding period of last year by registering an increase of 27.52%. For the nine months period ended Dec 2017, Bank posted a net profit of Rs.314.61 cores as against Rs.313.89 crores for the corresponding period of last year.

The Operating profit during Q3 of current year is Rs.321.90 crores as against Rs.171.86 crores during the corresponding period of the previous year, registering a growth of 87.30%. Further, for 9 months period of current financial year the operating profit stood at Rs.997.84 crores as against Rs.666.53 crores for the corresponding period of previous year.

The Net Interest Income for 9 months period ended December 2017 increased from Rs.1,138.46 crores to Rs.1,316.14 crores registering y-o-y growth of 15.61 percent.

Bank has clocked a business turnover of Rs.1,02,182 crores as on 31-12-2017, registering a y-o-y growth of 9.61%. Deposits of the Bank rose to Rs.57,771 crores from Rs.57,435 crores, registering y-o-y growth of 0.58%. Advances rose to Rs.44,411 crores from Rs.35,786 crores, registering y-o-y growth of 24.10%.

Current Account, Savings Account (CASA) deposits stood at Rs.16,306 crores and constituting 28.23% of total deposits.

The Capital Adequacy Ratio stood at 12.26 per cent [under BASEL III] against the regulatory requirement of minimum 9 percent.

Announcing the results at the Bank’s Head Quarters at Mangaluru, Shri Mahabaleshwara M S, Managing Director & CEO, of the Bank said, “The results are on the expected line and I am happy about the all round performance. The credit has grown by 24.10% and the CD ratio is at a new high of 76.87%. The operating profit has registered a growth of 87.30% and the net profit is up by 27.52%. The Gross NPA which was at 4.30% as of Dec 2016 is now reduced to 3.97% and the Net NPA is also reduced to 2.85% from 2.99%. The slippages are moderating and credit cost is showing favorable traction. Loan book is improving both quantitatively and qualitatively as evidenced from improved CD ratio, decreasing slippage ratio, declined GNPA & NNPA ratios, improved operational profit and improved NII. With sustained credit growth and improved earnings, Bank should be able to wither the provision pressure and further consolidate its position in the ensuing quarter”.

 

PERFORMANCE HIGHLIGHTS

[Rs.in crore]

Parameters Nine Months Period Quarter Ended
  31-12-2016 31-12-2017 Variation 31-12-2016 31-12-2017 Variation
Operating Profit 666.53 997.84 331.31 171.86 321.90 150.04
Net Profit 313.89 314.61 0.72 68.52 87.38 18.86
Net Interest Income 1,138.45 1,316.14 177.69 376.52 451.48 74.96
Advances 35,786 44,411 8,625 35,786 44,411 8,625
Deposits 57,435 57,771 336 57,435 57,771 336
Gross NPA [GNPA] per cent 4.30% 3.97% -33bps 4.30% 3.97% -33bps
Net NPA [NNPA] per cent 2.99% 2.85% -14bps 2.99% 2.85% -14bps
Net Interest Margin (NIM) 2.92% 3.07% 15 bps 2.84% 3.09% 25bps
Return on Asset [ROA] 0.70% 0.65% -5bps 0.44% 0.53% 9bps
CASA 30.22% 28.23% -199bps 30.22% 28.23% -199bps
CD Ratio [Terminal] 62.31% 76.87% 1,456 bps 62.31% 76.87% 1,456bps