)
Mangalore-based private sector lender Karnataka Bank Ltd on Monday reported 75.3% decline in net profit at Rs 28.95 crore for the second quarter ended September 30, 2013 compared to Rs 117.19 crore in the corresponding quarter last year.
Higher provisioning towards non-performing assets has contributed towards the steep fall in net profit. The Bank’s provisions went up 5.5 times to Rs 127 crore in the second quarter ended September 2013 as compared to Rs 23 crore in the same period last year. The net NPAs stood at Rs 593 crore from Rs 464 crore in the year ago period.
“Our NPAs increased due to CDR accounts worth Rs 110 crore. We are currently restructuring these assets and recover the amount in the third quarter,” P Jayarama Bhat, Managing Director, Karnataka Bank said.
The operating profit, however, grew 8.11% to Rs 171.64 crore as against Rs 158.77 crore in the year ago period. The total income for the quarter increased 11.63% to Rs 1,152.49 crore as against Rs 1,032.37 crore in the year ago quarter.
The net interest income of the Bank grew 22.31% to Rs 284.54 crore from Rs 232.64 crore in the year ago period. Other income grew by 1% year on year to Rs 87.80 crore.
The bank recorded 18.19% growth in advances at Rs 26,469 crore and deposits grew 11.91% to Rs 38,014 crore.
The ratio of net non-performing assets stood at 2.25% from 2.08% a year ago. The capital adequacy ratio improved to 13.47% from 12.17% a year ago. The return on assets declined to 0.27% from 1.21% in the year ago period.
The Bank’s shares ended 1.46% lower at Rs 104.65 at the close of trading on Bombay Stock Exchange on Monday.
