Karnataka Bank Q2 net down 5.3% to Rs 106 cr as bad loans go up


Udayavani, 16-10-2019 19:14:05


Write Comment     |     E-Mail To a Friend     |     Facebook     |     Twitter     |     Print


Karnataka Bank Q2 net down 5.3% to Rs 106 cr as bad loans go up

Mangaluru/New Delhi: Karnataka Bank on October 15 reported a 5.3 per cent fall in net profit at Rs 105.91 crore for the second quarter ended September of the current fiscal as bad loans increased marginally. The private sector bank had posted a net profit of Rs 111.86 crore in the corresponding July-September quarter of the previous fiscal ended March 2019.

The bank’s total income rose to Rs 1,938.40 crore during September quarter of 2019-20 as against Rs 1,653.81 crore in the year-ago period, the bank said in a regulatory filing.

The asset quality of the bank showed a slight blip as gross non-performing assets (NPAs) rose to 4.78 per cent of the gross advances as on September 30, up from 4.66 per cent a year ago.

In absolute value terms, gross NPAs stood at Rs 2,594.27 crore as against Rs 2,371.62 crore.

Similarly, net NPAs or bad loans rose to 3.48 per cent (Rs 1,863.11 crore) from 3 per cent (Rs 1,497.68 crore) a year ago.

The provisions for bad loans and contingencies too were raised to Rs 262.40 crore for July-September from Rs 193.22 crore in the corresponding quarter of 2018-19.

Provision coverage ratio as on September 30 stood at 59.19 per cent (57.49 per cent as on September 2018), the bank said.

The bank clocked a total business of Rs 1,23,658.07 crore, registering a year-on-year growth of 8.61 per cent. Deposits rose to Rs 70,189.65 crore, up 9.87 per cent, it said.

Even though the external business environment is not found very conducive for business, the bank has been able to post a satisfactory performance by focusing on operational efficiency.

As a result, during the current quarter the operating profit has grown at 16.02 per cent and the fee-based income at 38.68 per cent. The low cost current and savings account (CASA) funds constituted 27.41 per cent of the deposits, it said.

“Going forward, the bank will focus more on CASA augmentation, credit growth with special focus on retail and mid-corporates, asset quality by concentrating on timely recovery and by preventing further slippages. Thus bank is optimistic of growth prospects in the days to come with its customer-centric approach,” Karnataka Bank Managing Director & CEO Mahabaleshwara M S said.

Shares of Karnataka Bank closed 0.14 per cent lower at Rs 70.60 on the BSE on Tuesday.

Write your Comments on this Article
Your Name
Native Place / Place of Residence
Your E-mail
Your Comment   You have characters left.
Security Validation
Enter the characters in the image above
    
Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Kemmannu.com will not be responsible for any defamatory message posted under this article.
Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on kemmannu.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using kemmannu.com will be purely at your own risk, and in no way will Kemmannu.com be held responsible.
Similarly, Kemmannu.com reserves the right to edit / block / delete the messages without notice any content received from readers.




The drinking water for Udupi ??
View More

House for Rent at KemmannuHouse for Rent at Kemmannu
Veez Konkani Global Weekly e_magazine 100Veez Konkani Global Weekly e_magazine 100
Hottetumba Fish Court” inaugurated at UdupiHottetumba Fish Court inaugurated at Udupi
Congratulations to Vishu ShettyCongratulations to Vishu Shetty
Rozaricho Gaanch September IssueRozaricho Gaanch September Issue
Milarchi Laram - Issue Sep 2019Milarchi Laram - Issue Sep 2019
Milagres Milana 2020Milagres Milana 2020
Booking Open: Nayaab Residency, Court Back Road, UdupiBooking Open: Nayaab Residency, Court Back Road, Udupi
Shops and Flats for sale at Hampankatte, Kemmannu.Shops and Flats for sale at Hampankatte, Kemmannu.
Focus Studio, Near Hotel Kidiyoor, UdupiFocus Studio, Near Hotel Kidiyoor, Udupi
Canara Beach Restaurant, Hoode/Bengre, Udupi.Canara Beach Restaurant, Hoode/Bengre, Udupi.
Delite Catering, SanthekatteDelite Catering, Santhekatte
Canara Beach Restaurant Inaugurated at Bengre, Kemmannu.Canara Beach Restaurant Inaugurated at Bengre, Kemmannu.
Udupi: Congratulations to Raising smiles who won the first place in RED DROP AD- shoot competition..Udupi: Congratulations to Raising smiles who won the first place in RED DROP AD- shoot competition..
Welcome to Thonse Naturecure HospitalWelcome to Thonse Naturecure Hospital
Read online Uzvaad:<font color=red> Read online Uzvaad</font color=red>:
Read Online RaknnoRead Online Raknno
Kemmannu Platinum Jubilee Souvenir – Amruth KaanikKemmannu Platinum Jubilee Souvenir – Amruth Kaanik
Udupi TodayUdupi Today
St. Alphonsa of India