Earnings Review
Fall in provisions helps Karnataka Bk report YoY rise in PAT
This story was originally published at 20:16 IST on 23 October 2024
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--Karnataka Bank Jul-Sept net profit INR 3.36 bln vs INR 3.30 bln year ago
--Karnataka Bank gross NPA ratio 3.21% as on Sept 30 vs 3.54% qtr ago
--Karnataka Bk Jul-Sept total income INR 25.04 bln vs INR 22.76 bln yr ago
--Karnataka Bank net NPA ratio 1.46% as on Sept 30 vs 1.66% qtr ago
--Karnataka Bank Basel III capital adequacy ratio 17.58% as on Sept 30
--Karnataka Bk Jul-Sept provisions INR 313.30 mln vs INR 1.20 bln year ago
--Karnataka Bank provision coverage ratio 80.14% as on Sept 30
--Karnataka Bank Apr-Sept net profit INR 7.36 bln vs INR 7.01 bln year ago
--Karnataka Bk Apr-Sept total income INR 50.61 bln vs INR 45.59 bln yr ago
By Shubham Rana
NEW DELHI – Karnataka Bank's net profit for the quarter ended September rose just 1.8% on year to INR 3.36 billion due to a sharp fall in provisions. The bank's net profit had risen 8% on year in Apr-Jun to INR 4.00 billion.
Provisions and contingencies fell by almost 74% on year to INR 313.3 million in Jul-Sept, which helped the bank report a year-on-year rise in net profit. The bank's operating profit before provisions and contingencies was down 11.8% on year at INR 4.60 billion.
Total income rose 10.0% on year to INR 25.04 billion, led by a 10.2% increase in interest earned to INR 22.34 billion. Total expenses were up 16.5% on year at INR 20.44 billion, with interest expended rising 16.3% to INR 14.01 billion.
Gross non-performing assets ratio of the bank moderated to 3.21% as on Sept. 30 from 3.54% a quarter ago. Net NPA ratio, too, moderated to 1.46% from 1.66% as of Jun 30. Gross NPA ratio was 3.47% a year ago and net NPA ratio was 1.36%.
The provision coverage ratio of the bank was 80.14% as on Sept. 30, down from 83.22% a year ago. The Basel III capital adequacy ratio rose 17.58% from 16.20% a year ago.
The bank's loans rose 12.5% on year to INR 753.16 billion as on Sept. 30, while retail advances were up 12.2% on year at INR 367.12 billion. Deposits increased 11.7% on year to INR 999.68 billion as of Sept. 30. Retail term deposits rose 13.4% on year to INR 691.09 billion. The current account savings account deposit ratio fell 109 basis points on year to 30.82% as of Sept. 30.
The net interest income of Karnataka Bank rose a mere 1.4% on year to INR 8.34 billion. The net interest margin fell to 3.23% in Jul-Sept from 3.54% a quarter ago and 3.62% a year ago.
Shares of the bank ended 0.3% higher on Wednesday at INR 214.58 on the National Stock Exchange. End
Edited by Ashish Shirke
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