Karnataka Bank registers Q2 net profit of Rs. 93.38 Crores

Mangalore Today News Network

Mangaluru, Oct 13, 2017: Karnataka Bank has posted a Net Profit of Rs. 93.38 crores for Q2 of the current financial year 2017-18 compared to Rs 123.82 crores during Q2 of 2016-17.

However the operating profit showed a robust growth of 57.35% and improved to Rs.366.24 crores from Rs 232.75 crores (Q2 of FY 2016-17).

In the Meeting of the Board of Directors held today here in Mangaluru, the Board has approved the financial results for the quarter and half year ended September 30, 2017.

The Net Interest Income for the half year increased by Rs 102.71 crores from Rs 761.94 crores to Rs 864.65 crores registering a y-o-y growth of 13.48 per cent.

The Bank has clocked a total business of Rs 97,685.49 crores as on 30-09-2017, registering a y-o-y growth of 8.89%. Deposits of the Bank rose to Rs 56,558.45 crores registering a y-o-y growth of 6.52%.  Advances rose to Rs 41,127.04 crores registering a y-o-y growth of 12.34%.

The Capital Adequacy Ratio stood at 12.46 per cent [under BASEL III] against the regulatory requirement of minimum 9 per cent.

Gross NPAs stood at Rs 1,715.70 crores as on 30-09-2017 and constituted 4.13% of gross advances as against 4.34 % as on 30-06-2017.

Net NPAs stood at Rs 1,246.81 crores as on 30-09-2017, constituting 3.04% of net advances as against 3.20% as on 30-06-2017.

Expressing his satisfaction on the Q2 result of the Bank, Shri Mahabaleshwara M. S., Managing Director & CEO of the Bank, observed that, “Healthy growth in advances as evidenced by increased CD ratio (72.72%), higher operating profit (growth of 57.35%), moderate CASA, improved NII & NIM are the favorable factors. Even though the asset quality side pressure is easing gradually, provision requirement deserves continued attention. All the growth factors are showing positive traction and hence I am optimistic of strong and sustainable growth going forward”.