Karnataka Bank Q4 net profit rises 15% at Rs 31 cr; NII declines 13%

The capital adequacy ratio improved to 14.85% in March 2021

Private sector lender Karnataka Bank's net profit rose by 14.8 per cent to Rs 31.36 crore in fourth quarter ended March 2021 on dip in provisions and contingencies. It had posted a net profit of Rs 27.31 crore in same quarter last year.

The annual net profit for FY21 grew by 11.76 per cent to R 482.57 crore as against Rs 431.78 crore in FY20.

Its board recommended a dividend of 18 per cent, subject to shareholders approval. On Wednesday, its shares closed 1.41 per cent higher at Rs 71.9 apiece on BSE.

Mengaluru-based lender's net interest income (NII) for reporting quarter was down 13.25 per cent to Rs 459.14 crore 

from Rs 529.3 crore a year ago. The other income also declined 8.24 per cent.

While provisions and contingencies declined from Rs 356.5 crore in Q4FY20 to Rs 341.83 crore in Q4FY21, the Provision Coverage Ratio improved to 70.05 per cent in March 2021 from 64.7 per cent a year ago, the bank said in statement.

Its non-performing assets have also moderated. The gross non-performing Assets (NPAs) rose to 4.91 per cent (Rs 2,588 crore) in March 2021 as compared to 4.82 per cent (Rs 2,799 crore) in March 2020. 

Similarly, the NNPAs rose to 3.18 per cent (Rs 1,642 crore) in March 2021 from 3.08 per cent (Rs 1,755 crore) in March 

2020.

Even though both the GNPAs and NNPAs amounts have come down, the marginal increase in percentage term is mainly on account of denominator effect, the lender said.

The capital adequacy ratio (CAR) improved to 14.85 per cent in March 2021 from 12.88 per cent in March 2020.