Karnataka Bank's net up 76% to Rs 28.72 cr

Mangalore-headquartered private sector lender Karnataka Bank has registered a 76 per cent rise in its net profit to Rs 28.72 crore during July-September period of this financial year on the back of higher core earnings.

The bank’s revenues also showed a 16 per cent rise to Rs 635.44 crore during this period compared to Rs 548 crore posted in the same period last year.

The operating profit of the bank also rose more than 11 times, to Rs 76.68 crore in the second quarter compared to the same period last year.

However, provisions for the bank have risen around 11 times to Rs 57.68 crore during this period compared to Rs 5.24 crore last year.

The private sector lender also reported a reduction in both gross and net non-performing asset in the second quarter.

While gross NPA reduced to 3.66 per cent from 3.86 per cent last year, net NPA reduced to 1.11 per cent in the second quarter from 1.34 per cent during the same period last year.

Total advances of the bank reached Rs 15,683 crore by the end of September quarter, up by 26 per cent over the same period last year.

Similarly, the deposit of the bank registered a 16 per cent rise to Rs 25,045 crore during the second quarter against Rs 21,582.12 crore last year.

The bank’s capital adequacy ratio under Basel -I category stood at 11.41 and 11.71 under Basel-II category.

The bank, which recently reached Rs 40,000 crore business turn over in October, aims to reach a turnover of Rs 45,000 crore by the end of this fiscal.

While it plans to reach a deposit of Rs 27,500 crore by end of this fiscal, the overall advance is targeted to touch Rs 17,500 crore.

Karnataka Bank has 465 branches along with 227 ATMs as of now. It plans to expand the branch strength to 480 along with 300 ATMs by end of this fiscal.