Karnataka Bank Q3 net up 29%

Mangalore-based private sector lender, Karnataka Bank, today reported 29.2 per cent jump in its net profit at Rs 89.2 crore for the third quarter ended December 31, 2008, as compared to the corresponding quarter last financial year.

The bank's total income for the quarter stood at Rs 607.1 crore, a growth of 26.6 per cent as compared to the same period last year.

The rise in net profit was aided by a 20 per cent rise in its net interest income, which stood at Rs 138.2 crore during the third quarter as against the same quarter last fiscal. The bank has not made any provisions during the quarter and instead wrote back Rs 46 crore due to decrease in depreciation in investments, the bank's Chairman and Managing Director Ananthakrishna said.

The bank's operating profit grew by 13.9 per cent to Rs 138.3 crore during the quarter compared to the same period last year.

Capital adequacy ratio improved marginally to 13.58 per cent from 13.11 per cent in the third quarter last year. The bank's earnings per share went up to Rs 7.35 from Rs 5.69 in the corresponding quarter. The bank's non performing assets were marginally up at 1.40 per cent compared to 1.22 per cent in the corresponding quarter last year. The return on assets was flat at 1.17 per cent.