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Mangalore-based private sector lender Karnataka Bank has posted a 29.16 per cent increase in net profit to Rs 121.63 crore for the quarter ended June 30, compared with Rs 94 crore in the corresponding quarter of the last year.
The total income of the lender increased just four per cent to Rs 1,254 crore, compared with Rs 1,203 crore in the corresponding quarter of last year.
The rise in net profit was aided by a modest rise of 11.24 per cent in net interest income at Rs 278 crore, against Rs 250 crore in the year-ago quarter and 25 per cent growth in CASA (current account, savings account) deposits from Rs 8,759 crore to Rs 10,688 crore. Lower provisions during the quarter also helped the bank in increasing its profits. The Bank made a provision of Rs 56 crore during the first quarter as against Rs 73 crore in the first quarter last year.
The operating profit during the first quarter, however, declined 27 per cent to Rs 188 crore from Rs 258 crore a year ago.
The net interest margin declined six basis points to 2.33 per cent from 2.39 per cent a year ago.
"The Bank has kick-started the current financial year with 25 per cent plus growth in profit, which echoes the improved business sentiments. The Bank is all set to encash the new business opportunities that are just unfolding and also to sustain the same to have long term benefit," said P Jayarama Bhat, MD & CEO of the Bank.
The percentage of gross non performing assets (NPAs) has climbed to 3.43 per cent from 3.22 per cent a year ago and net non performing assets percentage has increased to 2.37 per cent from 1.96 per cent in the same quarter last fiscal.
The Capital Adequacy Ratio under Basel-III norms declined to 12.97 per cent from 13.86 per cent a year ago. The return on assets has however improved to 1.02 per cent from 0.90 per cent in the same quarter last year.
At the close of trading on Bombay Stock Exchange on Wednesday, the Bank's shares closed at Rs 127.90 per share, a gain of 0.27 per cent over the previous close.
