Mangaluru, July 11, 2020: Karnataka Bank posted an all time high quarterly Net Profit of Rs 196.38 crores, during Q1 of FY 2020-21 as against the previous high of Rs 175.42 crores recorded during Q1 of FY 2019-20. Thus the net profit grew by 11.95 % Y-O-Y.
In the Meeting of the Board of Directors held today here in Mangaluru through WebEx, the Board has approved the financial results for the quarter ended June 30, 2020.
The operating profit of the Bank has also increased from Rs 350.01 crore to Rs 677.04 crore showing a growth rate of 93.43 %. The Net Interest Income also has increased by 8.19% on year-on-year basis to Rs 535.12 crore from Rs 494.59 crore.
The business turnover of the Bank has touched Rs 1,26,063.48 crore as on 30-06-2020, registering 3.89% growth on year-on-year basis. The deposits of the Bank grew from Rs 68,520.72 crore to Rs 71,853.98 crore and advances grew from Rs 52,818.80 crore to Rs 54,209.50 crore. The CD ratio is at 75.44%.
Gross NPAs declined to 4.64% compared to 4.82% in the sequential previous quarter i.e as of 31-03-2020. Similarly Net NPAs also declined to 3.01% from 3.08%.
The Capital Adequacy Ratio of the Bank has further improved to 13.07% as compared to 12.70% as on 30-06-2019.
Expressing his satisfaction on the Q1 result of the Bank, Shri Mahabaleshwara M. S., Managing Director & CEO of the Bank, said “I am happy that, even though we are not an exception to many challenges and uncertainties triggered by COVID 19 pandemic, this quarter turned out to be a dream quarter on account of all time high quarterly net profit as well as operating profit. It was possible mainly on account of various cost reduction measures, robust treasury profit and a decent growth in interest income on account of improved interest spread. It gives immense satisfaction that we have successfully sailed through the COVID 19 affected first full quarter. Going forward we will continue to be “Cautious and Conservative” and I am confident that we will continue to ensure a steady and sustainable performance as hitherto.”