Karnataka Bank Q1 profit up by 11.16% to Rs. 121.54 Crores

Karnataka Bank Q1 profit up by 11.16% to Rs. 121.54 Crores

Mangalore Today News Network

Mangaluru, July 29,2016:Karnataka Bank posted a stable Q1 FY17 result with net profit growing at 11.16% to Rs. 121.54 crores as against Rs. 109.34 crore during Q1 FY16.The operating profit of the Bank has increased from Rs. 239.02 crore to Rs. 261.92 crore showing a growth rate of 9.58%. The Net Interest Income has increased by 10.07% on year-on-year basis to Rs. 364.69 crore from Rs. 331.32 crore, said a release from the Bank.

The meeting of the Board of Directors of the Bank was held at Mangaluru on July 29, 2016, has approved the financial statements of Q1 as on 30-06-2016.

The business turnover of the Bank has touched Rs. 86,447 crore as on 30-06-2016, registering a growth rate of 10.66% on year-on-year basis. The deposits of the Bank grew from Rs. 46,767 crore on year-on-basis to Rs. 51,501 crore with a growth rate of 10.12% and advances grew from Rs. 31,352 crore on year-on-year basis to Rs. 34,946 crore with a growth rate of 11.47%. The CASA deposits grew at a rate of 15.49% and reached a level of 26.22% of total deposits as of 30.06.2016, as against 25% as on 30.06.2015.

Gross NPAs stood at Rs 1,389 crore as at the end of Q1 of FY 2016-17, constituting 3.92% of gross advances. Net NPAs stood at Rs. 911 crore as at the end of Q1 of FY 2016-17, constituting 2.61% of net advances.
The capital adequacy ratio of the Bank stood at 11.64% (under Basel III) as at the end of June-2016 as against minimum 9% stipulated by RBI.

“Even though there is some spike in NPAs in Q1 in line with the Industry trend, the NPAs are reasonably contained within the tolerance zone. Further, it is a matter of satisfaction to note that, the preventive measures initiated by the Bank to minimize the collateral damages of NPAs has resulted in safe guarding the bottom line”, said Shri P Jayarama Bhat, MD & CEO of the Bank.

As on 30-06-2016, Bank has 733 branches and 1,297 ATMs, with 52 e-lobbies/mini e-lobbies. The Bank has plans to open another 32 new branches and 203 new ATMs by March-2017 with 48 new e-lobbies/mini e-lobbies, thus aiming for 2,265 service outlets, comprising of 765 branches & 1,500 ATMs with 100 e-lobbies/mini e-lobbies. 

The Bank aspires to clock a business turnover of Rs. 96,000 crore for the year 2016-17 comprising of deposits of Rs. 56,500 crore and advances of Rs. 39,500 crore.