Karnataka Bank posts annual net profit of Rs. 431.78 crores for the F.Y. 2019-20

mangaloretoday.com

Mangaluru, June 06, 2020: Karnataka Bank posted an annual net profit of Rs. 431.78 crores for the F.Y 2019-20, and Rs. 27.31 crores for the fourth quarter ended March 2020.

In the Meeting of the Board of Directors held today here in Mangaluru, the Board has approved the Annual financial results for the period ended March 31, 2020.

The business turnover of the Bank has touched Rs. 1,28,749.42 crore as on 31-03-2020, registering a growth rate of 4.44% on year-on-year basis. The deposits of the Bank grew from Rs. 68,452 crore to Rs. 71,785.15 crore and advances grew from  Rs. 54,828 crore to Rs. 56,964.27 crore. The CASA deposits reached a level of 28.91% of total deposits as on 31-03-2020, as against 28.06 % as on 31.03.2019.

The operating profit grew by 14.27% to Rs. 1,656.77 crore and the PCR (Provision Coverage Ratio) improved to 64.70% from 58.45% as on 31-03-2019.

The Non Performing Asset [NPA] has also moderated. The GNPA [Gross Non Performing Assets] of the Bank declined to 4.82% as of 31-03-2020 from 4.99% as on 31-12-2019. Similarly, the NNPA [Net Non Performing Assets] also moderated to 3.08% from 3.75% [as on 31-12-2019].

The priority sector advances of the Bank stood at 43.89% of total advances as against the minimum stipulated target of 40%.

The Capital Adequacy of the Bank under Basel III is at 12.66 % against 10.875% minimum as stipulated by RBI.

Expressing his happiness over the performance of the Bank, Shri Mahabaleshwara M S, Managing Director & CEO of the Bank said that “The Year just concluded was no doubt challenging but we have been able to sail smooth. The Operational efficiency has further got momentum as a result, stressed assets were further moderated. Bank also focussed on resilience by improving the provision coverage ratio.

The credit portfolio is further realigned by focusing more on retail and mid corporate advances, which grew by 11.07% and 11.14% respectively. Further, the transformation initiative of the Bank is centred around credit, HR, IT and customer engagements and the results are quite encouraging. Going forward even though COVID-19 Pandemic era is a phase of uncertainties’, Bank is committed to “Conserve, Consolidate and Emerge Stronger” by having a conservative approach.