Money & Banking

Karnataka Bank Q1 profit rises over 7% to ₹175 crore

Our Bureau Mangaluru | Updated on July 12, 2019 Published on July 12, 2019

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)

 

2019-20

2018-19

Net profit

175.42

163.24

Net interest income

494.59

468.58

Other income

244.79

208.80

Net interest margin (%)

2.81

3

Gross NPA (%)

4.55

4.72

Net NPA (%)

3.33

2.92

 

This is the all-time high quarterly net profit for the bank and it is powered by growth in interest income and other income

 

Published on July 12, 2019

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