Karnataka Bank Q1 net up 12.87 per cent

Operating profit for first quarter records robust jump of 52.43% to Rs 257.51 crore as against Rs 168.94 crore in year-ago period

Mangalore-based private sector lender Karnataka Bank today reported a 12.87 per cent rise in net profit to Rs 94.17 crore for first quarter-ended June 30, 2013 compared to Rs 83.43 crore reported during the same quarter last fiscal. This was aided by a healthy growth of 12.72 per cent in its net interest income, which stood at Rs 250 crore from Rs 222 crore during the same quarter last year.

The operating profit for the quarter recorded a robust jump of 52.43 per cent to Rs 257.51 crore as against Rs 168.94 crore in the year ago period. The total income went up 21.73 per cent to Rs 1,203.80 crore in the quarter-ended June compared to Rs 988.66 crore a year ago.

The net interest margin dipped to 2.39 per cent from 2.40 per cent in June, 2012. The CD Ratio has improved to 68.39 per cent from 66.60 per cent.

The total business of the bank touched Rs 62,159 crore registering a year on year growth of 14.63 per cent. Deposits grew by 13.42 per cent to Rs 36,914.62 crore and advances grew 16.45 per cent to Rs 25,244.37 crore during the quarter. Current account, savings account (CASA) increased 13.84 per cent to Rs 8,759.11 crore.

“Despite the subdued market and industry specific challenges, the Bank has improved in almost all important parameters and has been able to post a result which is better than industry average,” P Jayarama Bhat, managing director and CEO of the Bank said.

The capital adequacy ratio stood at 14.08 per cent under Basel-II standards against the regulatory requirement of minimum 9 per cent. The CAR was at 12.50 per cent in the year ago period.

The net non-performing assets ratio stood at 1.96 per cent as against 1.99 per cent in the first quarter last fiscal. The return on assets remained at 0.90 per cent.