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Aided by a significant jump in other income, Karnataka Bank registered a 12.87 per cent growth in net profit in the first quarter of 2013-14.
The net profit rose to Rs 94.17 crore from Rs 83.43 crore in the corresponding period of the previous fiscal.
P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, attributed the net profit growth to better operating profits, which rose to Rs 257.51 crore (Rs 168.94 crore) during the period.
For the current quarter, other income stood at Rs 205.95 crore (Rs 95.33 crore), a 116 per cent growth over the corresponding previous-year period.
Net interest income, which is the difference between the interest earned and the interest expended, increased to Rs 250 crore (Rs 221.89 crore).
Gross NPA (non-performing asset) came down to 3.22 per cent (3.31 per cent) and net NPA to 1.96 per cent (1.99 per cent) during the first quarter.
“In absolute terms, NPAs have increased a bit. It is because of the present market condition. Some slippages were there. These were temporary aberrations. We will put our effort to recover that in the coming quarter. All these accounts are under check,” Bhat said
The provisions and contingencies increased to Rs 72.89 crore (Rs 57.06 crore) during the period.
On Wednesday, the Karnataka Bank scrip closed at Rs 81.10 on the BSE, down 6.35 per cent.
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