Karnataka Bank Q3 net up 33.3% to Rs 107 cr

Total income went up 10.9% to Rs 1,165.54 cr

Mangalore-based private sector lender Karnataka Bank today reported 33.3% rise in net profit to Rs 106.70 crore for the third quarter of the current fiscal as against Rs 80.07 crore for the corresponding quarter last year.

The total income for the quarter went up 10.9% to Rs 1,165.54 crore against Rs 1,050.58 crore in the December quarter of previous year.

The Bank said its operating profit for the third quarter went up 9.5% to Rs 168.75 crore against Rs 154 crore in the year ago period.

The rise in net profit was aided by a 19.1% increase in net interest income at Rs 271.5 crore during the third quarter as against Rs 227.8 crore in the corresponding quarter last fiscal.

The business turnover of the Bank has increased 13.2% to Rs 65,688 crore at the end of December 2013. The deposits recorded a year on year growth of 11.7% to Rs 38,683 crore, while advances grew 15.4% to Rs 27,005 crore during the quarter.

"The Bank’s effort to increase the retail loan book has started yielding desired results. Further, the customer acquisition activity is in full swing in the form of “CASA Campaign” and as a result Bank is encashing the cross selling opportunities. With the economy showing signs of recovery and market sentiments improving, Q4 is expected to be more fruitful,” said P Jayarama Bhat, MD & CEO of the Bank.

The capital adequacy ratio under Basel-III stands at 12.86%. The net non performing assets ratio stood marginally went up to 2.23% as against 2.19%, while its return on assets improved to 0.96% from 0.81% in the year ago period.