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Growth in core business helped Karnataka Bank record a 67.6 per cent growth in net profit in the first quarter of 2012-13.
The bank registered a net profit of Rs 83.43 crore in the first quarter against Rs 49.78 crore in the corresponding period of the previous fiscal.
Speaking to Business Line after the board meeting here on Friday, Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said that the healthy growth in core business coupled with good recoveries enabled the bank attain the present level of performance.
The net interest income of the bank increased to Rs 226.3 crore (Rs 153.68 crore) during the quarter. “We have almost maintained the interest spread at 4.66 per cent. It was 4.21 per cent in the first quarter of the last fiscal,” he said.
The yield on advances stood at 12.79 per cent (11.75 per cent), and cost of deposits at 8.13 per cent (7.54 per cent) during the first quarter of 2012-13.
The operating profit for the quarter increased to Rs 168.93 crore (Rs 107.08 crore) during the period.
Recovery drive
On the recovery front, Mr Bhat said: “Rigorous recovery efforts are being made, and we are recovering the amount across the sectors. In this quarter, we made a recovery of Rs 56 crore.”
The bank recorded an 18.2 per cent growth in deposits and 19.68 per cent in advances.
He said the CASA (current account savings account) deposits increased to Rs 7,694 crore (Rs 6,585 crore), a 17 per cent growth during the quarter. The CD (credit-deposit) ratio went up from 65.32 per cent to 66.17 per cent, he added.
On the outlook for the current fiscal, Mr Bhat said the bank is expecting a business growth of around 25 per cent in 2012-13.
On Friday, the bank’s share closed at Rs 102.30 on BSE, up 2.20 per cent against the previous close.
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