Money & Banking

Karnataka Bank Q2 net rises to ₹119 crore

Our Bureau. Mangaluru | Updated on October 13, 2020

Mahabaleshwara MS, MD and CEO, Karnataka Bank

Karnataka Bank registered a net profit of ₹119.35 crore in the second quarter of FY21 against a profit of ₹105.91 crore in the corresponding period of FY20, recording a growth of 12.69 per cent during the period.

The net interest income of the bank increased to ₹574.87 crore in the second quarter of FY21 against ₹498.72 in Q2 of FY20. The fee-based income of the bank stood at ₹174.63 crore (₹233.45 crore) during the period.

Speaking to BusinessLine after the meeting of the board of directors of the bank, which was conducted through videoconferencing to approve the financial results for Q2 on Tuesday, Mahabaleshwara MS, Managing Director and CEOof the bank, said the lender was able to effectively navigate the Covid-affected first half of FY21 by mainly focusing on containing the interest expenses and by protecting the bottom-line.

The net profit of the bank for the first half of FY21 increased to ₹315.73 crore (₹281.33 crore), recording a growth of 12.23 per cent.

He said the bank realigned the advances portfolio to the decent high-yielding mid-corporates and corporates. The bank has been successful in withering away the impact of the pandemic as retail and mid-corporate advances have grown at 8.53 per cent and 16.52 per cent, respectively.

Mahabaleshwara said the asset quality of the bank increased significantly, with gross NPA and net NPA decreasing to 3.97 per cent (4.78 per cent)and 2.21 per cent (3.48 per cent), respectively.

On the outlook, he said he is confident of sustaining and consolidating the gains in the months to come.

Asked about the impact of interest moratorium, he said the moratorium impact has almost withered away.

On Tuesday, the scrip of the bank closed at ₹42 on the BSE, up 0.24 per cent against the previous close of ₹41.90.

Published on October 13, 2020

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