Karnataka Bank posts ₹ 119.35 cr. net profit in second quarter of 2020-21

Karnataka Bank on Tuesday announced posting of ₹ 119.35 crore net profit during the second quarter of financial year 2020-21, registering 12.69 % growth year-on-year compared to the results of Q2 of previous financial year (₹ 105.91 crore).

The bank’s half-yearly net profit too registered 12.23 % year-on-year growth, from ₹ 281.33 crore in the previous financial year to ₹ 315.73 crore in the current financial year, said a release from the bank here.

The bank’s Board of Directors approved the financial results for the quarter and the half-year at a video conference meeting held in Mangaluru.

The operating profit of the bank during the first half year increased from ₹ 763.44 crore to ₹ 1,177.38 crore, a growth of 54.22 %. The Net Interest Income increased by 11.75 % on year-on-year basis to ₹ 1,109.99 crore from ₹ 993.31 crore.

The business turnover of the bank touched ₹ 1,27,021.51 crore as on September 30, 2020, registering a 2.72 % year-on-year growth.

The deposits of the bank grew from ₹ 70,189.65 crore to ₹ 72,922.58 crore and advances grew from ₹ 53,468.42 crore to ₹ 54,098.93 crore. The CD ratio is at 74.18 %.

Gross NPAs declined to 3.97 % compared to 4.78 % as on September 30, 2019 and net NPAs declined to 2.21 % from 3.48 %.

Bank Managing Director and CEO M.S. Mahabaleshwara said that he was happy that the bank was the first to come out with Q2 results thereby flagging off Q2 earnings season.

It was able to keep the bottomline intact with a steady growth of 12.23 % in net profit and improve the asset quality significantly as the NPAs decreased.

He said that the bank was successful in facing the impact of the COVID-19 situation as the retail and mid corporate advances grew at 8.53 % and 16.52 %, respectively and the share of CASA deposits rose to 29.17 % of total deposits.

Appointed

The board on Tuesday appointed Uma Shankar as Additional Director (Non-Executive), to become effective on November 1. Ms. Shankar, a former executive director of the Reserve Bank of India, has over 37 years of banking experience in different capacities.

Her core competence is in financial sector supervision, but she also looked after currency management, foreign exchange and internal accounting and administration.

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