Karnataka Bank slips on weak Q2 numbers

Karnataka Bank fell 1.77% to Rs 69.35 after the bank reported Q2 earnings after market hours yesterday, 15 October 2019.

Karnataka Bank's net profit fell 5.3% to Rs 105.91 crore on a 17.2% increase in total income to Rs 1938.40 crore in Q2 September 2019 over Q2 September 2018.

Gross non-performing assets (NPAs) stood at Rs 2594.27 crore as on 30 September 2019 as against Rs 2437.53 crore as on 30 June 2019 and Rs 2371.62 crore as on 30 September 2018.

The ratio of gross NPAs to gross advances stood at 4.78% as on 30 September 2019 as against 4.55% as on 30 June 2019 and 4.66% as on 30 September 2018.

The ratio of net NPAs to net advances stood at 3.48% as on 30 September 2019 as against 3.33% as on 30 June and 3% as on 30 September 2018.

Provisions and contingencies jumped 35.8% to Rs 262.40 crore in Q1 June 2019 over Q1 June 2018.

Provision coverage ratio of the bank stood at 59.19% as on 30 September 2019 as against 57.49% on 30 September 2018.

Mahabaleshwara M S, managing director & CEO of the Bank, said, "Even though the external business environment is not found very conducive for business, the bank has been able to post a satisfactory performance by focusing on operational efficiency. As a result, during the current quarter the operating profit has grown at 16.02% and the fee based income at 38.68%. The low cost CASA funds constituted 27.41% of the deposits."

He further added that the bank will focus more on CASA augmentation, credit growth with special focus on retail and mid corporates, asset quality by concentrating on timely recovery and by preventing further slippages.

Meanwhile, the S&P BSE Sensex was up 68 points or 0.18% to 38574.55.

On the BSE, 92,127 shares were traded in the counter so far compared with average daily volumes of 87,530 shares in the past two weeks. The stock hit a high of Rs 70 and a low of Rs 68.4 so far during the day.

The stock hit a 52-week high of Rs 141.15 on 08 Apr 2019. The stock hit a 52-week low of Rs 70 on 16 Oct 2019.

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