Money & Banking

Karnataka Bank Q1 net rises 22% at ₹163 crore

A J Vinayak Mangaluru | Updated on July 12, 2018 Published on July 12, 2018

Karnataka Bank reported a net profit of ₹163.24 crore in the first quarter of 2018-19 against a profit of ₹133.85 crore in the corresponding period of 2017-18, recording a growth of 21.96 per cent.

Speaking to BusinessLine on Thursday, Mahabaleshwara MS, Managing Director and CEO of the bank, said there has been impressive growth both in the topline and bottomline of the bank.

On the growth in net profit, he said this is mainly propelled by operating profit, which has gone up by 19.11 per cent. The operating profit for the quarter stood at ₹368.88 crore (₹309.70 crore).

The net interest income of the bank increased to ₹468.58 crore (₹424.42 crore in Q1 of FY18), recording a growth of 10.40 per cent.

Stating that the bank has been able to contain cost, he said establishment expenses alone came down by 19.58 per cent during the quarter. An increase in income and reduction in expenses have resulted in improved operating profit, he said.

NPAs

Gross and net non-performing assets (NPAs) of the bank stood at 4.72 per cent (4.34 per cent), 2.92 per cent (3.20 per cent), respectively.

Mahabaleshwara said the bank has been able to arrest slippages during the Q1 of 2018-19. Slippages came down to ₹269.82 crore (₹497.94 crore) during the period.

Provision coverage ratio was one of the highest at 57.21 per cent during the first quarter of the current fiscal. It was 52.02 per cent in Q1 of 2017-18.

On the recovery front, he said the stressed assets portfolio is gradually easing. Certain upgradations were also there in the list of NPAs. The bank has been able to make cash recovery of ₹80.18 crore (₹48.94 crore) in the first quarter alone.

Published on July 12, 2018
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