 "Karnataka Bank rebounds from 52-week low")
Karnataka Bank was up 6% at Rs 101, recovering 7% from intra-day’s low on the BSE, after the bank said its net non-performing assets (NPAs) remained unchanged at 2.41% of net advances as of December 31, 2015 (Q3FY16), over the previous year quarter.
However, gross NPAs of the bank increased slightly to 3.56% in Q3FY16 up from 3.44% in a year ago quarter. At the end of September quarter, gross NPA stood at 3.18% and net NPA at 1.96%, the bank said.
Shri P Jayarama Bhat, managing director & chief executive office of the bank said, "Gain in operating profit is mainly on account of increased interest income which is again an indication of growing asset base. Higher taxation provision also pulled down the profit. Nevertheless, growth management deserves special attention. NPA pruning exercise undertaken during the quarter has given the much needed respite”.
Meanwhile, the bank reported 9% year on year (YoY) decline in its net profit to Rs 97 crore in Q3FY16 from Rs 107 crore in the corresponding quarter of previous fiscal. Net interest income (interest earned minus interest expended) remained flat at Rs 305 crore against Rs 302 crore in previous year quarter.
The stock hit a 52-week low of Rs 93.85 on the BSE in early morning trade. The trading volumes on the counter nearly doubled with a combined 4.04 million shares changed hands on the BSE and NSE till 11:39 a.m.
However, gross NPAs of the bank increased slightly to 3.56% in Q3FY16 up from 3.44% in a year ago quarter. At the end of September quarter, gross NPA stood at 3.18% and net NPA at 1.96%, the bank said.
Shri P Jayarama Bhat, managing director & chief executive office of the bank said, "Gain in operating profit is mainly on account of increased interest income which is again an indication of growing asset base. Higher taxation provision also pulled down the profit. Nevertheless, growth management deserves special attention. NPA pruning exercise undertaken during the quarter has given the much needed respite”.
Meanwhile, the bank reported 9% year on year (YoY) decline in its net profit to Rs 97 crore in Q3FY16 from Rs 107 crore in the corresponding quarter of previous fiscal. Net interest income (interest earned minus interest expended) remained flat at Rs 305 crore against Rs 302 crore in previous year quarter.
The stock hit a 52-week low of Rs 93.85 on the BSE in early morning trade. The trading volumes on the counter nearly doubled with a combined 4.04 million shares changed hands on the BSE and NSE till 11:39 a.m.