Karnataka Bank net up 21%

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Mangalore-based private sector lender Karnataka Bank today reported 21% rise in net profit at Rs 81 crore for the fourth quarter ended March 31, 2014 compared to Rs 67 crore reported in the corresponding quarter last year. The total income for the period went up 7.6% to Rs 1,173 crore from Rs 1,090 crore in the year ago period.

Lower provisions made towards the non-performing assets boosted the bank's net profit during the quarter. The bank's total provisions stood at Rs 38 crore as against Rs 54 crore in the corresponding quarter last year, showing a drop of 30%.

The net interest income increased 13% to Rs 250 crore during the fourth quarter from Rs 221 crore a year ago. The net interest margin stood flat at 2.17%.

"The year 2013-14 was a challenging year for the economy on account of various domestic and international factors. Inspite of this, Karnataka Bank has been able to show a modest growth in all spheres of banking and has also made prudent provisions, which goes a long way in strengthening the Balance Sheet. Sustainable growth, containing the NPAs, prudent provisioning, expansion of network of branches and ATMs etc have been the highlights of current year's performance," said P Jayarama Bhat, Managing Director and CEO of the bank.

The capital adequacy ratio of the Bank stood at 13.30% (under Basel II) and at 13.20% (under Basel III) as at the end of March-2014 as against minimum 9% stipulated by RBI.

The gross non-performing assets increased 31% to Rs 836 crore during the fourth quarter ended March 31, 2014 as against the year ago period. The net NPA percentage went up to 1.91%. The return on assets marginally improved to 0.71% from 0.66% a year ago.