Karnataka Bank posts quarterly net profit of Rs 125.61 cr

Karnataka Bank posted a net profit of Rs 125.61 crore for the quarter ending on September 2021.

“The net profit grew by 5.17 per cent when compared to the corresponding period during the previous fiscal. The quarter net profit in September 2020 was Rs 119.44 crore,” Karnataka Bank Managing Director and Chief Executive Officer (CEO) Mahabaleshwara M S said.

In the meeting of the Board of Directors conducted through Webex on Thursday, the Board approved the financial results for the quarter and half year ending on September 30, 2021.

For the half-year ending on September 2021, the net profit stood at Rs 231.69 crore as against Rs 315.82 crore in September 2020.

For the quarter ending on September 2021, the net interest income also had increased by 10.83% to Rs 637.10 crore from Rs 574.87 crore. The non-performing assets have also further moderated as GNPAs had reduced to 4.50% as against 4.82% as of June 30 and NNPAs was reduced to 2.84 per cent, as against 3.00 per cent as against on June 30.

The business turnover of the bank has touched Rs 1,31,389.92 crore as of September. The deposits of the bank grew from Rs 72,928.99 crore to Rs 76,921.98 crore and advances from Rs 54,098.93 crore to Rs 54,467.94 crore. The CD ratio of the bank stood at 70.81 per cent.

The Capital Adequacy Ratio of the bank was 14.48 per cent as compared to 13.41 per cent as on September 30, 2020.

Mahabaleshwara, expressing satisfaction with the bank’s Q2 results, said, “The bank is able to sail through the pandemic. The credit growth is back on track as we added net fresh credit of Rs 2,676.73 crore during this quarter with a quarterly growth rate of 5.17 per cent as against - 0.20 per cent during the corresponding second quarter.”

The different digital initiatives, including digital underwriting of loans, digital credit monitoring, risk management among others under the ‘KBL NxT’ transformation journey are progressing as per plans and Bank is poised to emerge as ‘Digital Bank of Future’.