Karnataka Bank net dips 19% to Rs 67 cr

Total income for the quarter increased 14.13% to Rs 1,090.32 crore vs Rs 955.33 crore in the year ago quarter

Mangalore-based private sector lender Karnataka Bank reported a 19 per cent drop in net profit to Rs 67.39 crore for the fourth quarter ended March 31, 2013, as compared with Rs 83.16 crore in the corresponding quarter last year.

Total income increased 14.13 per cent to Rs 1,090.32 crore as against Rs 955.33 crore in the year ago quarter. Operating profit was also down 15.77 per cent to Rs 153.59 crore as against Rs 182.35 crore in Q4 last year.

The drop in net profit was due to slower growth in net interest income, which grew marginally 3.37 per cent to Rs 221.40 crore . Net interest margin went up 12 basis points to 2.31 per cent. Net non-performing assets declined to 1.51 per cent from 2.11 per cent a year ago. The capital adequacy ratio improved 38 basis points to 13.22 per cent and the CASA ratio 35 basis points to 24.91 per cent. Return on assets declined to 0.89 per cent from 0.94 per cent.

“The bank acted prudently by making adequate provisions with an intention to strengthen the balance sheet during the quarter,” P Jayarama Bhat, MD & CEO of the bank said.