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Net interest income (NII) and other income boosted the net profit of Karnataka Bank by 11.16 per cent in the first quarter of 2016-17.
The bank registered a net profit of ₹121.54 crore in Q1 FY17 as against ₹109.34 crore in the corresponding period of the previous fiscal.
Speaking to BusinessLine after the board meeting in Mangaluru on Friday, P Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said there was 46.35 per cent growth in other income during the period.
Other income climbed to ₹174.35 crore (₹119.13 crore in Q1 FY16). Of this, trading profit increased to ₹41.80 crore (₹10.51 crore), and fee-based income to ₹132.55 crore (₹108.62 crore). The NII of the bank climbed 10 per cent to ₹364.69 crore (₹331.32 crore).
Stress assets During the quarter, the gross and net non-performing assets (NPAs) of the bank stood at 3.92 per cent (3.26 per cent) and 2.61 per cent (2.05 per cent), respectively. Bhat said that gross NPAs have remained below 4 per cent and will be controlled in the next two-three quarters.
Preventive measures initiated by the bank to minimise the impact of NPAs have helped safeguard the bottomline, he added. Provisions and contingencies increased to ₹136.31 crore (₹115.85 crore) during the quarter.
Low-cost deposits The current account and savings account (CASA) deposits stood at 26.22 per cent of total deposits in the first quarter (25 per cent in the year-ago quarter).
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