 "Karnataka Bank Q2 profit up 16% to Rs 102 cr")
Karnataka Bank reported a 15.59 per cent jump in second quarter profits at Rs 102.25 crore on improved credit in its retail business. The bank had reported profits of Rs 88.46 crore in the July to September period in 2014. Operating profit showed a growth of 4.21 per cent at Rs 169.46 crore from Rs 162.62 crore in the corresponding period a year ago.
Gross non performing assets (NPAs) declined to 3.18 per cent at Rs 1043.67 crore against Rs 1060.88 crore in the year-ago period. Net NPA declined 41 basis points to 1.96 per cent from 2.37 per cent in the corresponding period a year ago.
“Turnaround in NPA is significant achievement of the second quarter and efforts would be further intensified to consolidate the position. Increase in net interest income (10.90 per cent) and reduction in NPAs (GNPA by 35 basis points and NNPA by 41 basis points) are the twin achievements of the quarter,” P Jayarama Bhat, managing director and chief executive of Karnataka Bank said in a statement.
“Our focus during the ensuing quarters will be on expansion of credit, particularly retail credit with an eye on asset quality. With the recent cut of 25 basis points in our base rate from 10.5 per cent to 10.25 per cent, we expect the retail loan portfolio to pick up in the ensuing quarters.”
