Mangaluru, Jan 18, 2016 : P Jayaram Bhat, chairman and managing director of the City based Karnataka Bank here stated.The bank has posted a net profit of Rs 309 crore for the first nine month period ended December 2015 against Rs 317 crore for corresponding period last year, which is 2.69 % lower on y-o-y basis. For the stand alone third quarter ended December 2015, Bank has earned a net profit of Rs 96.91 crore as against Rs 106.94 crore during Q3 of 2014-15.
The operating profit for nine month period ended December 2015 is Rs 600.16 crore as against Rs 533.92 crore during the corresponding period of previous year, registering growth of 12.41%. Net interest income for nine months period ended December 2015 increased by Rs 65.61 crore from Rs 877.53 crore to Rs 943.14 crore, registering y-o-y growth of 7.48%. Bank has clocked business turnover of Rs 82,592 crore as on March 31, 2015, registering a y-o-y growth of 9.92%.
Deposits rose to Rs 49,664 crore registering y-o-y growth of 10.86%. Advances rose to Rs 32,928 crore registering y-o-y growth of 8.54%. Current Account, Savings Account deposits increased by Rs 1,791 crore from Rs 10,738 crore to Rs 12,529 crore and constitutes 25.23% of total deposits [23.97% as on December 2014]. The capital adequacy ratio stood at 11.67% [under BASEL III] against the regulatory requirement of minimum 9%, Jayaram Bhat noted.
Gross NPAs stood at Rs 1,187 crore and constituted 3.56% of total advances as on December 31, 2015. Net NPA stood at Rs 791 crores representing 2.41% of net advances as on December 31, 2015. "I am happy that tested conservative approach has helped us to tide over the situation. Gain in operating profit is mainly on account of increased interest income which is again an indication of growing asset base. Higher taxation provision pulled down the profit," he said.
Nevertheless growth management deserves special attention. NPA pruning exercise undertaken during the quarter has given much needed respite. Bank is gearing up for digital transformation in all aspects of Banking in line with KBL Vision 2020 for its all-round transformation. Bank has network of 1,882 service outlets comprising of 702 branches and 1180 ATMs spread across India and is poised to increase its number of outlets to 2,000 by the end of March 2016.