Mangalore-based private sector lender Karnataka Bank Limited on Saturday reported a massive jump of 86.7 per cent in net profit at Rs 72.05 crore for the quarter ended December 31, 2011 compared to the corresponding quarter last fiscal. Total income for the period increased by 32.05 per cent to Rs 882.72 crore as against the year ago period.
Higher interest income from advances and growth in earnings from fees and commissions helped the bank increase its profitability during the quarter. The net interest income recorded a rise of 17.6 per cent at Rs 186.94 crore compared to Rs 158.94 crore earned in the same quarter previous year.
However, the operating profit for the quarter declined modestly by 7.7 per cent to Rs 104.07 crore as against Rs 112.84 crore in the year ago period.
The capital adequacy ratio of the Bank stood at 12.46 per cent (under Basel II) as at the end of December 31, 2011. The percentage of net non-performing assets has increased to 2.23 per cent from 1.18 per cent in the year ago period. The return on assets ratio has improved from 0.54 to 0.85 per cent during the December 2011 quarter.