Karnataka Bank NII up 11%, PAT down

Karnataka Bank’s second quarter net profit fell to Rs 93.38 crores from 123.82 crores last year.

However the operating profit showed a robust growth of 57.35% and improved to Rs 366.24 cr from Rs 232.75 cr.

The Net Interest Income rose to 440 cr from 397 cr last year.

Gross non-performing assets stood at 1,715.70 crores as on 30-09-2017 and constituted 4.13% of gross advances as against 4.34% as on 30-06-2017.

Net NPAs — which excludes bad loans that have already been provided for — stood at Rs 1246.81 crores as on 30-09-2017, constituting 3.04% of net advances as against 3.20% as on 30-06-2017.

“Healthy growth in advances as evidenced by increased CD ratio 72.72%, higher operating profit growth of 57.35%, moderate CASA, improved NII & NIM are the favorable factors,” said Mahabaleshwara M.S., Managing Director & CEO of the Bank.

“Even though the asset quality side pressure is easing gradually, provision requirement deserves continued attention. All the growth factors are showing positive traction and hence I am optimistic of strong and sustainable growth going forward,” he added.