Karnataka Bank Ltd posts net profit of Rs 281.33 crore

Karnataka Bank Ltd. has recorded a net profit of Rs 281.33 crore for the half year ended on September 30 as compared to Rs 275.10 crore during the corresponding period last year, registering a growth of 2.26%.

However, the Bank has posted a net profit of Rs 105.91 crore for Q2 of the current financial year 2019-20 compared to Rs 111.86 crores during Q2 of 2018-19.

In the meeting of the Board of Directors held here, on Tuesday, the Board has approved the financial results for the quarter
and half year ended on September 30.

The Bank has clocked a total business of Rs 1,23,658.07 crore as on September 30 registering a year on year (y-o-y) growth of 8.61%.

Deposits of the Bank have rose to Rs 70,189.65 crore registering a y-o-y growth of 9.87 %. Advances rose to Rs 53,468.42 crore registering a y-o-y growth of 7.00%. Bank has achieved a CD Ratio of 76.18 %.

“Even though the external business environment is not found very conducive for business, Bank has been able to post a satisfactory performance by focusing on operational efficiency. As a result, during the current quarter the operating profit has grown at 16.02% and the fee-based income at 38.68%.

The low cost CASA funds constituted 27.41% of the deposits.
Going forward, the Bank will focus more on CASA augmentation, credit growth with special focus on retail and mid corporates, asset quality by concentrating on timely recovery and by preventing further slippages.

Thus, the Bank is optimistic of growth prospectus in the days to come with its customer centric approach”, Bank Managing Director and Chief Executive Officer (CEO)
Mahabaleshwara M said.