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Karnataka Vikas Grameena Bank (KVGB), a regional rural bank headquartered in Dharwad, registered a net profit of ₹102.29 crore for 2017-18 against a profit of ₹153.75 crore in 2016-17, recording a decline of 33.46 per cent.
Speaking to BusinessLine on Friday, S Ravindran, Chairman, KVGB, said that the operating profit went up to ₹336 crore (₹258 crore), recording a growth of 30.38 per during the year.
He said the bank utilised this opportunity to clean up the balance sheet by proactively identifying stressed assets, and also by making prudent provisioning for them.
The bank registered a net profit of ₹102.29 crore after making a provision of ₹234 crore towards tax and other provisions. Of this, the provision towards non-performing assets (NPAs) stood at ₹169.50 crore (₹35.26 crore). The net NPA of the bank stood at 4.96 per cent during 2017-18 against 2.66 per cent in 2016-17.
Provision coverage ratio increased to 37.48 per cent from 36.34 per cent during 2016-17.
The net interest income of the bank increased to ₹543.64 crore (₹471.71 crore) and other income to ₹148.17 crore (₹125.73 crore) during the year.
He said that the bank was able to show an absolute growth of ₹1,853 crore over the last year and reached the business level of ₹23,432 crore in 2017-18 from ₹21,579 crore in 2016-17.
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