NEW DELHI :
Karnataka Bank on Tuesday reported a 5.3% fall in net profit at Rs105.91 crore for the second quarter ended September of the current fiscal as bad loans increased marginally.
The private sector bank had posted a net profit of Rs111.86 crore in the corresponding July-September quarter of the previous fiscal ended March 2019.
The bank's total income rose to Rs1,938.40 crore during September quarter of 2019-20 as against Rs1,653.81 crore in the year-ago period, the bank said in a regulatory filing.
The asset quality of the bank showed a slight blip as gross non-performing assets (NPAs) rose to 4.78% of the gross advances as on September 30, up from 4.66% a year ago.
In absolute value terms, gross NPAs stood at Rs2,594.27 crore as against Rs2,371.62 crore.
Similarly, net NPAs or bad loans rose to 3.48% (Rs1,863.11 crore) from 3% (Rs1,497.68 crore) a year ago.
The provisions for bad loans and contingencies too were raised to Rs262.40 crore for July-September from Rs193.22 crore in the corresponding quarter of 2018-19.
Provision coverage ratio as on September 30 stood at 59.19% (57.49% as on September 2018), the bank said.
The bank clocked a total business of Rs1,23,658.07 crore, registering a year-on-year growth of 8.61%. Deposits rose to Rs70,189.65 crore, up 9.87%, it said.
Even though the external business environment is not found very conducive for business, the bank has been able to post a satisfactory performance by focusing on operational efficiency.
As a result, during the current quarter the operating profit has grown at 16.02% and the fee based income at 38.68%. The low cost current and savings account (CASA) funds constituted 27.41% of the deposits, it said.
"Going forward, the bank will focus more on CASA augmentation, credit growth with special focus on retail and mid-corporates, asset quality by concentrating on timely recovery and by preventing further slippages. Thus bank is optimistic of growth prospectus in the days to come with its customer centric approach," Karnataka Bank Managing Director & CEO Mahabaleshwara MS said.
Shares of Karnataka Bank closed 0.14% lower at Rs70.60 on the BSE on Tuesday.