Karnataka Bank net up 11%

A J Vinayak Updated - January 18, 2018 at 12:10 AM.

Spike in other income aids profit growth

P Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said that even though there is some spike in NPAs in Q1 in line with the industry trend, the NPAs are reasonably contained within the tolerance zone.

Net interest income (NII) and other income boosted the net profit of Karnataka Bank by 11.16 per cent in the first quarter of 2016-17.

The bank registered a net profit of ₹121.54 crore in Q1 FY17 as against ₹109.34 crore in the corresponding period of the previous fiscal.

Speaking to

BusinessLine after the board meeting in Mangaluru on Friday, P Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said there was 46.35 per cent growth in other income during the period.

Other income climbed to ₹174.35 crore (₹119.13 crore in Q1 FY16). Of this, trading profit increased to ₹41.80 crore (₹10.51 crore), and fee-based income to ₹132.55 crore (₹108.62 crore). The NII of the bank climbed 10 per cent to ₹364.69 crore (₹331.32 crore).

Stress assets During the quarter, the gross and net non-performing assets (NPAs) of the bank stood at 3.92 per cent (3.26 per cent) and 2.61 per cent (2.05 per cent), respectively. Bhat said that gross NPAs have remained below 4 per cent and will be controlled in the next two-three quarters.

Preventive measures initiated by the bank to minimise the impact of NPAs have helped safeguard the bottomline, he added. Provisions and contingencies increased to ₹136.31 crore (₹115.85 crore) during the quarter.

Low-cost deposits The current account and savings account (CASA) deposits stood at 26.22 per cent of total deposits in the first quarter (25 per cent in the year-ago quarter).

Published on July 29, 2016 08:39