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Mangalore-based private sector lender Karnataka Bank Ltd announced on Tuesday that its net profit for the quarter ended December 2014 remained flat at Rs 106.9 crore, compared to Rs 106.7 crore in the year-ago period.
Its total income, however, increased 17 per cent to Rs 1,365 crore for the quarter under review against Rs 1,166 crore in the corresponding quarter a year ago. Operating profit rose eight per cent to Rs 183 crore from Rs 169 crore.
The bank’s net profit was impacted by higher provisions during the quarter. Its provisions went up 97 per cent to Rs 79 crore from Rs 40 crore in the year-ago period. However, the lender’s net interest income rose 11 per cent to Rs 302 crore from Rs 272 crore a year ago.
Net non-performing assets (NPAs) have risen 21 per cent to Rs 727 crore during the December 2014 quarter against Rs 599 crore a year earlier. The percentage of net NPAs has gone up to 2.4 per cent from 2.2 per cent a year earlier.
The return on assets declined to 0.85 per cent from 0.96 per cent in the December quarter of FY14. The capital adequacy ratio under Basel-III fell to 11.79 per cent from 12.86 per cent a year earlier.
“The results are in line with our expectations. With the signs of industrial downturn bottoming out and the business sentiments gaining momentum, we are optimistic of business excellence in the Q4 of FY15. However, geopolitical uncertainties are still a cause of concern and the ensuing Budget will be a trend setter for economic growth”, said P Jayarama Bhat, managing director and chief executive officer of the bank.
Karnataka Bank’s shares ended 2.33 per cent lower at Rs 144.60 apiece on the BSE on Tuesday.
