Karnataka Bank recorded a net profit of ₹68.52 crore in the third quarter of 2016-17, a decline of 29.38 per cent from the ₹96.91 crore reported in the corresponding period of 2015-16.
P Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said in a press release that though the third quarter has not been “normal” mainly on account of demonetisation-related issues, the bank has been able to withstand its impact.
He said that the bank’s net profit increased to ₹313.89 crore in the first nine months of this fiscal, against ₹308.50 crore in the corresponding period last year.
The deposits of the bank during the quarter increased to ₹57,435 crore (₹49,664 crore in the year-ago period). Current account, savings account (CASA) deposits constituted 30.22 per cent of total deposits in Q3, compared to 25.23 per cent in the same period last year.
He told BusinessLine that the increase in CASA deposits will bring down the cost of deposits. “This will help us improve the profitability of the bank in the coming quarters,” he said.
Advances of the bank increased to ₹35,786 crore (₹32,928 crore).
The net interest income came in at ₹376.56 crore (₹304.93 crore), and other income ₹133.59 crore (₹132.72 crore). The net interest margin increased to 2.40 per cent (2.20 per cent).
During the third quarter, gross non-performing assets (NPA) and net NPA of the bank stood at 4.30 per cent (3.56 per cent) and 2.99 per cent (2.41 per cent), respectively.
On Monday, the Karnataka Bank scrip closed at ₹119.80 on the BSE, down 0.25 per cent, against the previous close of ₹120.10.