Karnataka Bank is trading higher by 4% at Rs 128, after reporting almost three-fold jump in net profit at Rs 117 crore for the second quarter ended September 2012 due to lower provisioning. The private sector bank had a profit of Rs 41.08 crore in year ago quarter.
The bank’s net interest income (NII) grew by 28% at Rs 233 crore, while provisions and contingencies fell 52.5% at Rs 22.75 crore in September 2012 quarter over the previous year. Net interest margins (NIM) improved to 2.39% from 2.2% during the recently concluded quarter.
“On account of retail push, which increased to 48.67% form 38% a couple of years back, the yield has increased and delinquency has come down. Bank has put in place strategies to increase the retail loans portfolio to a level of at least 60%,” the bank said in a press release.
The stock opened at Rs 124 and hit 52-week high of Rs 129 on the BSE. A combined 10.48 million shares have changed hands on the counter so far on both the exchanges.
