Private lender Karnataka Bank on Tuesday reported a 5.3 per cent year-on-year (Y-o-Y) decline in its net profit at Rs 105.91crore for the second quarter ended September 30, 2019, dented by marginal rise in bad loans.
"The private lender posted a net profit of Rs 111.86 crore in the same quarter last year," Karnataka Bank said in a filing to the Bombay Stock Exchange.
The bank's total income grew by 17.20 per cent year-on-year to Rs 1,938.40 crore in July-September quarter of FY20 as against Rs 1,653.81 in the same quarter last year.
The other income (non-interest income) rose by 53.45 per cent to Rs 308.76 crore against Rs 201.20 crore in the same period last year.
The provisions and contingencies of the bank increased to Rs 262.40 crore in Q2FY20 as compared to Rs 193.22 crore made in Q2FY19. Provision coverage ratio stood at 59.19 per cent during September quarter versus 57.49 per cent in the same period last year, the bank said.
On the asset front, the Mangalore-headquartered bank's gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - rose marginally to 4.78 per cent versus 4.66 per cent in the year-ago quarter. Net NPA too expanded to 3.48 per cent during June quarter as compared to 3 per cent in the corresponding quarter last year.
The bank's absolute gross NPA stood at Rs 2,594.27 crore in Q2FY20 against Rs 2,371.62 crore in Q2FY19.
For the half year ended September 30, 2019, Karnataka Bank has reported net profit of Rs 281.32 crore as compared to Rs 275.10 crore in the year-ago period, registering a growth of 2.26 per cent.
The bank has clocked a total business of Rs 1,23,658.07 crore as registering a y-o-y growth of 8.61 per cent. Deposits of the Bank rose 9.87 per cent Y-o-Y to Rs 70,189.65 crore, while advances climbed 7 per cent Y-o-Y to Rs 53,468.42 crore.
Going forward, Bank will focus more on CASA augmentation, credit growth with special focus on retail and mid corporates, asset quality by concentrating on timely recovery and by preventing further slippages. Thus Bank is optimistic of growth prospects in the days to come with its customer centric approach", said Mahabaleshwara M S, Managing Director & CEO, of the Bank.
Ahead of Q2 results, Karnataka Bank shares closed trade at Rs 70.60 apiece, down 0.14 per cent, against previous close on the BSE.
Edited by Chitranjan Kumar