Karnataka Bank posts all-time high profit of Rs 196 crore in Q1

Karnataka Bank on Friday reported an all-time high quarterly net profit of Rs 196 crore during Q1 of FY 2020-21 as against the previous high of Rs 175 crore during Q1 of previous fiscal.

Thus the net profit grew by nearly 12 per cent year-on-year. The operating profit increased from Rs 350 crore to Rs 677 crore, marking a growth rate of 93 per cent, the private sector lender said in a statement.

Net interest income rose by 8 per cent year-on-year to Rs 535 crore from Rs 495 crore. The business turnover touched Rs 1.26 lakh crore as on June 30, registering 3.89 per cent growth on year-on-year basis.

The deposits grew from Rs 68,521 crore to Rs 71,854 crore and advances grew from Rs 52,819 crore to Rs 54,210 crore.

Gross non-performing assets (NPAs) declined to 4.64 per cent compared to 4.82 per cent in the sequential previous quarter ended March. Similarly, net NPAs also declined to 3.01 per cent from 3.08 per cent.

The capital adequacy ratio further improved to 13.07 per cent as compared to 12.7 per cent as on June-end last year.

Managing Director and CEO M S Mahabaleshwara said the performance was possible mainly on account of various cost reduction measures, robust treasury profit and decent growth in interest income on account of improved interest spread.

Karnataka Bank has over one crore customers and a network of 858 branches spread across 22 states and two union territories.

( With inputs from ANI )