Karnataka Bank Monday posted close to a six-fold jump in net profit at Rs 61.73 crore during March quarter 2019.
The bank clocked a profit of Rs 11 crore during January-March period of 2017-18. The profit was however lower from Rs 140.41 crore reported in December quarter 2018-19.
Total income during the latest quarter grew 4.85 per cent to Rs 1,821.88 crore from Rs 1,737.55 crore in year-ago same period, Karnataka Bank said in a regulatory filing.
Net interest income dipped 11.20 per cent to Rs 480.88 crore in March quarter, as against Rs 541.51 crore in the year-ago period.
Net interest margin -- a gauge of profitability for banks--was lower by 67 basis points to 2.87 per cent for the latest quarter as against 3.54 per cent a year ago.
Karnataka Bank said its gross NPAs came down to 4.41 per cent of gross advances by end of March 2019 from 4.92 per cent by the year-ago same period.
Net bad loans were also down to 2.95 per cent from 2.96 per cent.
For full 2018-19 fiscal, Karnataka Bank posted an all-time high annual profit of Rs 477.24 crore, rising by 46.57 per cent from the previous fiscal, it said.
The previous highest net profit of Rs 452.26 crore was posted during 2016-17.
The bank's board on Monday recommended a dividend of Rs 3.50 per share for the fiscal, it said.
Bank's provision coverage ratio stood at 58.45 per cent as on March 31, 2019 (54.56 per cent as on March 31, 2018)
The lender said it has raised Rs 320 crore under tier II capital by issuing Basel III-compliant subordinated debt instrument, on private placement basis during the quarter.
The total amount raised during the year by issue of such instruments is Rs 720 crore.
The highest net profit during the year has been possible on account of consistent and sustained growth, said Mahabaleshwara MS, Managing Director and CEO of the bank.
"Further, this is the first full year of Karnataka Bank VIKASS, the transformation initiative of the bank, which is centred around credit, IT, HR etc. This initiative has started bearing result as the bank is now functioning as 'one bank, one team' and the initiative has resulted in further strengthening of the fundamentals," he said.
The advances of the bank rose 16.03 per cent to Rs 54,828 crore by end of March 2019; deposits were up 8.88 per cent to Rs 68,452 crore.
Shares of Karnataka Bank closed 3.82 per cent down at Rs 118.20 apiece on BSE.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)