Karnataka Bank has registered 7.46 per cent growth in net profit at ₹175.42 crore in the first quarter of 2019-20. Its profit stood at ₹163.24 crore in the corresponding period of 2018-19.
Speaking to BusinessLine in on Friday, Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said this is the all-time high quarterly net profit for the bank and it is powered by growth in interest income and other income.
The net interest income increased to ₹494.59 crore (₹468.58 crore in Q1 of FY19), and other income to ₹244.79 crore (₹208.80 crore).
The gross and net non-performing assets (NPAs) stood at 4.55 per cent (4.72 per cent) and 3.33 per cent (2.92 per cent), respectively. Provisions (other than tax and contingencies) came down to ₹201.14 crore (₹222.06 crore) during the period under review.
Mahabaleshwara said the gross slippage was at ₹526 crore and recovery was at ₹544.87 crore during Q1 of 2019-20. Stating that the bank exited from around ₹2,500 crore of bulk advances at a lower rate, he said Karnataka Bank is now replenishing it with retail and MSME advances with a slightly higher yield. As a result, yield on advances has gone up to 9.32 per cent (9.26 per cent).
The business turnover touched ₹1,21,339.52 crore as on June 30, registering a growth of 9.85 per cent on year-on-year basis. Deposits grew to ₹68,520.72 crore from ₹62,725 crore, and advances to ₹52,818.80 crore from ₹47,731 crore.
The CD ratio of the bank stood at 77.08 per cent (76.10 per cent) during the quarter.
Q1 AT A GLANCE (in ₹ cr)
This is the all-time high quarterly net profit for the bank and it is powered by growth in interest income and other income
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