Karnataka Bank Q3 net profit down 12% at ₹123 crore

Karmataka Bank posted a net profit of ₹123.14 crore in the third quarter of 2019-20 against a profit of ₹140.41 crore in the corresponding period of 2018-19, registering a decline of 12.30 per cent.

Speaking to BusinessLine after the meeting of the board of directors of the bank to consider the unaudited results of the bank on Thursday, Mahabaleshwara MS, Managing Director and CEO, said the net profit is slightly better than the sequential previous quarter (Q2 FY20), when it registered a net profit of ₹105.91 crore.

“We have been able to get net profit of more than ₹100 crore in the last three quarters,” he said. The bank recorded an operating profit of ₹501.79 crore in the third quarter of 2019-20 against ₹400.37 crore in the corresponding quarter of the previous fiscal, registering a growth of 25.33 per cent. He attributed the growth in operating profit to improvements in interest income, trading profit, and fee-based income, and to the containment of expenditure. He said the bank has utilised this improved operating profit for accelerated provisioning.

As a result, provision coverage ratio has gone up to 59.34 per cent (57.20 per cent).