Karnataka Bank Q2 net up 20% at Rs 112 crore on lower provisioning

Team Udayavani, Oct 13, 2018, 10:14 AM IST

New Delhi/Bengaluru: Private sector Karnataka Bank has reported a rise of 20 per cent in its net profit at Rs 111.86 crore in the second quarter ended September 2018 on healthy interest income and lower provision for bad assets.

The bank had reported a net profit of Rs 93.38 crore in the corresponding July-September quarter of 2017-18. Total income of the bank increased to Rs 1,653.81 crore in the second quarter of 2018-19, from Rs 1,565.75 crore in the same period of the preceding fiscal, the bank said in a regulatory filing. Bank’s earnings from interest moved up to Rs 1,452.61 crore during the September quarter as against Rs 1,317.93 crore in the year-ago period.

The provisioning for bad loans and contingencies for the quarter came down to Rs 193.22 crore as against Rs 225.98 crore. On asset quality, the net non-performing assets (NPAs) came down to 3 per cent of the net advances by the end of September 30, 2018, as against 3.04 per cent in the same period a year earlier.

In value terms, net NPAs stood at Rs 1,497.68 crore as on September 30, 2018, as against Rs 1,246.81 crore as at end-September 2017. Gross NPA ratio rose to 4.66 per cent (Rs 2,371.62 crore) against 4.13 per cent (Rs 1,715.70 crore). Provision coverage ratio as at September 30, 2018 stood at 57.49 per cent (46.94 per cent at September 2017). Stock of the bank traded 0.41 per cent down at Rs 97.95 apiece on the BSE.