Mangaluru: Karnataka Bank, one of the oldest private banks headquartered here, has posted a net profit of Rs 93.38 Crores during the second quarter of the current financial year 2017-18. Though the profit is less compared to the Rs 123.82 Crore net profit in the second quarter of 2016-17, the operating profit showed a robust growth of 57.35 percent and improved to Rs 366.24 Crore from Rs 232.75 Crore (Q2 of FY 2016-17).
The board approved the financial results for the quarter and half year ending 30 September 2017 during the its meeting which was held in Mangaluru on October 13.
The Net Interest Income for the half year has increased by Rs 102.71 Crore from Rs 761.94 Crore to Rs 864.65 Crore registering an year-on-year growth of 13.48 percent.
The bank has recorded a total business of Rs 97,685.49 Crore as on 30 September 2017, registering an year-on-year growth of 8.89 percent. The deposits of the bank rose to Rs 56,558.45 Crore registering an year-on-year growth of 6.52 percent. Advances rose to Rs 41,127.04 Crore registering an year-on-year growth of 12.34 percent.
The Capital Adequacy Ratio stood at 12.46 percent (under BASEL III) against the regulatory requirement of minimum 9 percent.
Gross NPAs stood at Rs 1,715.70 Crore as on 30 September 2017 and constituted 4.13 percent of gross advances as against 4.34 percent as on 30 June 2017.
Net NPAs stood at Rs 1,246.81 Crore as on 30 September 2017, constituting 3.04 percent of net advances as against 3.20 percent as on 30 June 2017.
Expressing his satisfaction on the second quarter results of the Bank, Managing Director and CEO of the bank Mahabaleshwara M S said, “Healthy growth in advances as evidenced by increased CD ratio (72.72%), higher operating profit (growth of 57.35%), moderate CASA, improved NII and NIM are the favourable factors. Even though the asset quality side pressure is easing gradually, provision requirement deserves continued attention. All the growth factors are showing positive traction and hence I am optimistic of strong and sustainable growth going forward.”
