JOIN US A shift in the pro file of its advances portfolio towards retail loans and a consequent decline in delinquencies enabled a 28 per cent growth in net interest income and a 185 per cent growth in net profit for Mangalore-based Karnataka Bank for the second quarter ended September 30, 2012.
In regulatory filing with the stock exchanges, the bank said its net interest income for the quarter under review stood at Rs 232.65 crore, up from Rs 181.47 crore in the same quarter last fiscal.
Advances and deposits
Net profit at Rs 117.19 crore was higher, compared to Rs 41.08 crore in the year-ago period. Advances and deposits grew 17 per cent and stood at Rs 22,395 crore and Rs 33,968 crore respectively. Non performing assets as a percentage of total advances at 2.08 was lower, compared to 2.22 in the second quarter last year.
The net interest margin was 2.39 per cent, up from 2.20 per cent in Q2, 2012. However, the capital adequacy ratio was down at 12.17 per cent, compared to 12.85 per cent in Q2, 2012.
The MD & CEO of Karnataka Bank P Jayarama Bhat attributed the spike in net profit to the increase in the bank’s retail loan portfolio that has increased over the years from 38 per cent and now stood at 49 per cent, leading to better yield and low delinquencies.