Karnataka Bank registered a net profit of ₹121.63 crore in the first quarter of 2014-15 as against ₹94.17 crore in the corresponding period of the previous fiscal, recording a growth of 29.16 per cent.

Speaking to BusinessLine after the board meeting in Mangalore on Wednesday, P Jayarama Bhat, Managing Director of the bank, said lower provisioning for NPAs (non-performing assets) and reduced tax outgo helped the bank record this growth in net profit.

Provisions (other than tax) and contingencies stood at ₹55.94 crore (₹72.89 crore), and tax expenses at ₹43.54 crore (₹90.45 crore) during the first quarter.

Additionally, CASA (current account, savings account) deposits constituted 24.98 per cent (23.73 per cent) during the period, he said.

During the first quarter of 2014-15, the gross and net NPAs of the bank stood at 3.43 per cent (3.22 per cent) and 2.37 per cent (1.96 per cent), respectively.

To a query on NPAs, he said: “I still stand by my guidance of 2.5 per cent for gross NPAs and 1.5 per cent for net NPAs by the end of this fiscal.”

The net interest income of the bank stood at ₹278.21 crore (₹250.1 crore), and other income at ₹129.70 crore (₹205.95 crore) during the first quarter of 2014-15. Asked about the outlook for the coming quarters, Bhat said: “This quarter’s net profit is looking up. With this, I think we should be able to give a better result for the current financial year.”

On Wednesday, the bank’s shares closed at ₹127.90 on the BSE, up 0.27 per cent from the previous close of ₹127.55.

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