Karnataka Bank net up 3 times to Rs 88 crore in Q2

Total income grew 11% to Rs 1,278 crore as against Rs 1,152 crore a year ago

Karnataka Bank on Friday reported three-times growth in net profit at Rs 88 crore for the quarter ended September, compared to Rs 29 crore in the corresponding quarter last year. Total income grew 11 per cent to Rs 1,278 crore against Rs 1,152 crore in the year-ago quarter.

The rise in profits was mainly on account of lower provisions during the quarter.

Provisions were lower by 34 per cent to Rs 84 crore compared to Rs 127 crore in the same quarter a year ago.

The Bank’s operating profit declined 5.2 per cent to Rs 163 crore compared to Rs 172 crore a year ago. The net interest income has shown a modest increase of 4.5 per cent to Rs 298 crore from Rs 285 crore a year ago.

Gross non-performing assets increased 10.2 per cent to Rs 1,061 crore during the quarter as against Rs 962 crore a year ago. The net NPA level also increased to Rs 702 crore as against Rs 593 crore in the same quarter last year, showing an increase of 18.3 per cent year on year. The percentage of net NPA rose to 2.37 per cent from 2.25 per cent year ago.

The return on assets improved to 0.72 per cent year on year from 0.27 per cent in the corresponding quarter last year.