Mangaluru: The Karnataka Bank- one of the old generation private bank headquartered here, has posted a net profit of Rs 93.38 crores for Q2 of the current financial year 2017-18. Though the profit is less compared to the Rs 123.82 crores net profit of its 2016-17 Q2, the operating profit showed a robust growth of 57.35 per cent and improved to Rs. 366.24 crores from Rs. 232.75 crores [Q2 of FY 2016-17].
The board approved the financial results for the quarter and half year ended September 30, 2017 during the board meeting which was held in Mangaluru on Friday.
The Net Interest Income for the half year increased by Rs.102.71 crores from Rs. 761.94 crores to Rs 864.65 crores registering a year on year growth of 13.48 per cent.
The Bank has recorded a total business of Rs.97,685.49 crores as on September 30, 2017, registering a y-o-y growth of 8.89 per cent. Deposits of the Bank rose to Rs 56,558.45 crores registering a y-o-y growth of 6.52 per cent. Advances rose to Rs 41,127.04 crores registering a y-o-y growth of 12.34 per cent.
The Capital Adequacy Ratio stood at 12.46 per cent [under BASEL III] against the regulatory requirement of minimum 9 per cent.
Gross NPAs stood at Rs 1,715.70 crores as on September 30, 2017 and constituted 4.13 per cent of gross advances as against 4.34 per cent as on June 30, 2017.
Net NPAs stood at Rs 1,246.81 crores as on September 30, 2017, constituting 3.04 per cent of net advances as against 3.20 per cent as on June 30, 2017.
Expressing his satisfaction on the Q2 results of the Bank, Mahabaleshwara M. S., Managing Director & CEO of the Bank, said that, “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 favorable 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”.
