MANGALORE: The Karnataka Bank Ltd has posted its all-time high quarterly net profit of Rs196.38 crore during the first quarter (Q1) of 2020-21 (FY21) as against the previous high of Rs175.42 crore recorded during Q1 of FY 20.
The net profit grew by 11.96 per cent year on year during the period under review. At the meeting on Friday through WebEx, the board has approved the financial results for the quarter ended June 30, 2020.
The operating profit of the bank has also increased handsomely from Rs350.01 crore to Rs677.04 crore showing a growth of 93.43 per cent. The net interest income (NII) also has increased by 8.19 per cent year-on-year to Rs 535.12 crore from Rs494.59 crore.
The deposits of the bank grew from Rs 68,520.72 crore to Rs 71,853.98 crore whereas the advances grew from Rs 52,818.80 crore to RS54,209.50 crore during the period with the CD ratio reaching 75.44 per cent.
The gross NPA has declined to 4.64 per cent compared with 4.82 per cent in the previous quarter. The net NPAs also declined to 3.01 per cent from 3.08 per cent during the same period.
The Capital Adequacy Ratio (CAR) of the bank has further improved to 13.07 per cent compared with 12.70 per cent as on June 30, 2019. Mahabaleshwara MS, the managing director & CEO of the bank expressed satisfaction about the performance though his bank has not been an exception to the challenges and uncertainties triggered by the pandemic.
“It was possible mainly on account of various cost reduction measures, robust treasury profit and a decent growth in interest income, thanks to the improved interest spread,” he added.