Karnataka Bank registers ₹135.37 crore net profit in Q3

Karnataka Bank on Tuesday announced posting a net profit of ₹135.37 crore for the third quarter of the current financial year with a growth rate of 9.93% as against ₹123.14 crore earned during the corresponding quarter of the previous year.

For the nine months period ending December 2020, the Bank posted a net profit of ₹451.1 crore as against ₹404.47 crore for the corresponding period of last year with year-on-year growth rate of 11.53%, stated a release.

The Board of Directors on Tuesday held a meeting via videoconferencing and approved the financial results for the quarter and nine months period. The operating profit during Q3 was ₹437.96 crore and for the nine months period, it was ₹1,615.34 crore. The Bank clocked a business turnover of ₹1,27,013.55 crore as on December 31, 2020, with deposits of ₹73,826.06 crore and Advances ₹53,187.49 crore. Retail and mid corporate advances have shown a y-o-y growth of 9.75%. Gross NPA of the Bank has moderated to 3.16% as on December 31 from 4.99% as on December 31, 2019. Similarly, Net NPA has also come down to 1.74% from 3.75%.

Announcing the results at the Bank’s Head Quarters at Mangaluru, MD and CEO M.S. Mahabaleshwara said, “The strong numbers of Q3 depict the resilience of Karnataka Bank inspite of COVID-19. Our efforts to realign the asset portfolio towards retail and mid corporate advances are paying desired results as the same has grown at the rate of 9.75% y-o-y resulting in increased NII which has grown at a rate of 14.85% y-o-y. Moreover, strong operating profit which grew at the rate of 27.67% y-o-y has further strengthened the Provision Coverage Ratio (PCR) to an all time high of 80.51%.”

Mr. Mahabaleshwara said another significant achievement was that share of CASA deposits has increased to an all time high of 30.07% of total deposits. Cost efficiency measures yielded positive results as the overall cost declined by 2.35%.

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Printable version | Feb 26, 2021 7:26:40 AM | https://www.thehindu.com/news/national/karnataka/karnataka-bank-registers-13537-crore-net-profit-in-q3/article33562859.ece

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