The non-performing assets (NPAs) of the Mangaluru-based private sector lender Karnataka Bank continued to surge in the September-December quarter of the current financial year.
The gross NPAs of the bank stood at Rs 2,777.46 crore as on December 31, 2019, up 7% from Rs 2,594.27 crore in the September quarter. The gross NPA ratio of the bank, similarily, has risen to 4.99% from 4.45%.
Similarly, the net NPAs of the bank surged by 10% to Rs 2,058.04 crore in the December quarter from Rs 1,863.11 crore in the September quarter.
The net NPA ratio as well jumped 75 basis points (bps) to 3.75% from 3% three months ago.As a result, provisions (other than tax) and contingencies rose to Rs 314.70 crore from Rs 208.99 crore in the third quarter of the previous fiscal.
The share prices of the bank have been falling for almost 10 months, amid concerns of an increase in the NPAs.
The share price of the bank stood at Rs 74.90 apiece, down a whopping 47% from the 52-week high of Rs 141.15 per share, that it had touched on April 8, 2019.
The Bank, last week, reported a 12% decline in its net profit at Rs 123.14 crore for the third quarter ended December 31, 2019 on account of rise in bad loans.
The bank had reported a net profit of Rs 140.41 crore in the year-ago period, the bank said in a regulatory filing.
However, the total income of the bank rose to Rs 2,023.68 crore from Rs 1,815.79 crore in the same quarter a year ago.
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