Growth in interest income and fee-based income helped Karnataka Bank record a growth of 60.69 per cent in net profit during the third quarter of 2018-19.
The bank posted a net profit of ₹140.41 crore against ₹87.38 crore in the corresponding period of the previous year, registering a growth of 60.69 per cent.
Speaking to
The bank earned total interest of ₹1,514.42 crore (₹1,332.24 crore), and net interest income (NII) of ₹487.95 crore (₹451.48 crore) during the quarter. Other income of the bank stood at ₹301.37 crore (₹194.62 crore) during the quarter.
He said there was a moderation in NPA, despite treating the ₹155-crore credit exposure to IL&FS as NPA. “Still, gross NPA has come down to 4.45 per cent during Q3 of 2018-19, from 4.66 per cent in Q2 of the current fiscal. We have proactively treated the entire IL&FS exposure as NPA, and accordingly, we have started providing also,” he said.
Gross NPA stood at 4.45 per cent in the third quarter of 2018-19 against 3.97 per cent in the corresponding quarter of 2017-18. Net NPA of the bank stood at 3 per cent (2.85 per cent) during the period.
The bank posted a net profit of ₹415.51 crore during the first nine months of 2018-19 against ₹314.61 crore in the corresponding period of 2017-18, recording a growth of 32.07 per cent.
Stating that business growth is very much on track, he said the bank’s advances increased to ₹51,961 crore (₹44,354 crore), registering a growth of 17.15 per cent, and deposits to ₹65,141 crore (₹57,771 crore), registering a growth of 12.76 per cent, during the period.