Money & Banking

Karnataka Bank Q4 net profit plunges 92%

Our Bureau Mangaluru | Updated on May 15, 2018 Published on May 15, 2018

Karnataka Bank registered a net profit of ₹11 crore in the fourth quarter of 2017-18 against a profit of ₹138.37 crore in the corresponding period of the previous fiscal, recording a decline of 92 per cent.

The board of directors of the bank, which met on Tuesday to consider the audited financial results for 2016-17, proposed a dividend of 30 per cent for 2017-18.

Terming Q4 as a challenging one, Mahabaleshwara MS, Managing Director and CEO, said that the bank utilised this opportunity to clean up the balance sheet by proactively identifying stressed assets and also by making prudent provisioning. During Q4 of 2017-18, the bank made an additional provisioning of ₹590.38 crore.

During the quarter, the bank registered a business growth of 17.59 per cent, advances growth of 28 per cent, CD ratio of 75.16 per cent, current account, savings account (CASA) share of 27.99 per cent and operating profit growth of 47.94 per cent.

Stating that the RBI had given certain dispensations earlier, Mahabaleshwara said those dispensations have been withdrawn now.

“We have considered all those as NPAs and provided accordingly. As a result, the NPA quantum and provisions have also gone up. In spite of that, we have been able to contain gross NPA to 4.92 per cent and net to NPA 2.96 per cent during Q4 2017-18,” he said.

Published on May 15, 2018
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