Karnataka Bank net rises 2.85 times to Rs 117 crore in Q2

The operating profit for the second quarter went up 36.04 per cent to Rs 158.77 crore as against Rs 116.71 crore

Mangalore-based private sector lender Karnataka Bank has registered 2.85 times increase in net profit at Rs 117.19 crore for the second quarter ended September 30, 2012 compared to Rs 41.08 crore reported in the corresponding quarter last fiscal. Its total income for the quarter increased 22.85 per cent to Rs 1,032.37 crore compared to the same period last year.

The operating profit for the second quarter went up 36.04% to Rs 158.77 crore as against Rs 116.71 crore in the same period last year.

The rise in net interest income, which rose 28.08% to Rs 232.65 crore helped the bank show excellent rise in net profit. Its advances grew 17.46% to Rs 22,395 crore as against Rs 1,067 crore in the second quarter last year. The bank also recorded 17.74% rise in deposits at Rs 33,968 crore as against the year ago period.

The net interest margin improved to 2.39% as against 2.20% in the year ago period.

P Jayarama Bhat, Managing Director and CEO of the bank said, “The healthy growth in business coupled with good recoveries has enabled the bank to attain the present level of performance. The retail loan book, which accounted for just 38% of the portfolio a couple of Years back, has steadily increased to 48.67%. On account of this “retail Push”, the yield has increased and delinquency has come down. Bank has put in place strategies to increase the retail loans portfolio to a level of at least 60%.” 

The net non-performing assets of the bank declined to 2.08% as against 2.22% a year ago. The capital adequacy ratio has declined to 12.17% as against 12.85% in the September quarter last year. The return on assets has stood at 1.21% as against 0.50% in the September quarter last year.