News Karnataka
Monday, April 22 2024

Karnataka Bank posts annual net profit of Rs. 431.78 crores for FY ’19-20

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Mangaluru: Karnataka Bank announced that it had posted an annual net profit of Rs. 431.78 crores for F.Y 2019-20. It also made an Rs: 27.31 crore profit for the fourth quarter ended March 2020. Operational profit grew by 14.27% to Rs. 1,656.77 crore and the PCR (Provision Coverage Ratio) improved to 64.70% from 58.45% as of 31-03-2019.

At a meeting of the Board of Directors held today here in Mangaluru, the Board approved its balance sheet for the last fiscal. With a growth rate of 4.44% on a YoY basis in its annual turnover, the bank recorded Rs: 1,28,749.42 crore as its turnover.

Expressing his happiness over the performance of the Bank, Shri Mahabaleshwara M S, Managing Director & CEO of the Bank said that “The Year just concluded was no doubt challenging but we have been able to sail smooth. The Operational efficiency has further got momentum as a result, stressed assets were further moderated. Bank also focussed on resilience by improving the provision coverage ratio.

Advances grew marginally from Rs. 54,828 crore to Rs. 56,964.27 crore. The priority sector advances of the Bank stood at 43.89% of total advances as against the minimum stipulated target of 40%.

Deposits of the Bank grew from Rs. 68,452 crore to Rs. 71,785.15 crore. CASA deposits reached a level of 28.91% of total deposits as on 31-03-2020, as against 28.06 % as on 31.03.2019 reported the bank.

NPA’s, the issue most banks are struggling to cope with shows a welcome decline. The GNPA [Gross Non-Performing Assets] of the Bank declined to 4.82% as of 31-03-2020 from 4.99% as of 31-12-2019. Similarly, the NNPA [Net Non-Performing Assets] also moderated to 3.08% from 3.75% [as on 31-12-2019].

The Capital Adequacy of the Bank under Basel III is at 12.66 % against 10.875% minimum as stipulated by RBI.

The credit portfolio has been realigned gradually. It now focusses more on retail and mid-corporate advances, which grew by 11.07% and 11.14% respectively. The Bank is committed to “Conserve, Consolidate and Emerge Stronger” by having a conservative approach in the face of challenges posed by the COVID19 pandemic.

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