Karnataka Bank Ltd recorded a net profit of ₹96.91 crore in the third quarter of 2015-16 as against a profit of ₹106.94 crore during the corresponding period previous fiscal, recording a decline of 9.37 per cent.
P Jayarama Bhat, MD & CEO of the bank, told Business Line that the increase in tax provisions and decrease in spread has caused a small dip in profit.
The net interest margin (NIM) came down to 2.34 per cent during Q3 of 2015-16 as against 2.38 per cent in the corresponding quarter of 2014-15.
The tax expense of the bank stood at ₹31.66 crore during the third quarter of 2015-16, he said. There was a tax benefit of ₹2.57 crore during the Q3 of 2014-15.
Provisions (other than taxes) and contingencies of the bank stood at ₹63.11 crore during the third quarter of 2015-16 as against ₹78.89 crore in the corresponding period of the previous fiscal.
The net interest income of the bank stood at ₹304.93 crore (₹302.05 crore), and the other income at ₹132.72 crore (₹162.83 crore).
During the third quarter of 2015-16, the gross NPA and the net NPA of the bank reached 3.56 per cent (3.44 per cent) and 2.41 per cent (2.41 per cent), respectively.
On the outlook for Q4, he said: “With better recovery, lower slippages and increased other income, we are hoping to increase the profit.”