Moneycontrol Bureau
Private sector lender Karnataka Bank on Friday reported a 3 times jump (year-on-year) in second quarter net profit at Rs 88.5 crore led by lower provisions and higher other income. Profit in the year-ago period was Rs 29 crore.
The sharp jump in profit also attributed to low base in the same quarter last year. In Q2FY14, profit fell 75 percent Y-o-Y to Rs 29 crore due to a 457 percent year-on-year jump in provisions at Rs 127 crore.
Net interest income, the difference between interest earned and interest expended, rose by 4.5 percent to Rs 297.3 crore in the quarter ended September 2014 compared to Rs 284.5 crore in same quarter last year. Other income (non-interest income) jumped 17 percent to Rs 102.8 crore from Rs 87.80 crore during the same period.
Provisions and contingencies declined 34.2 percent year-on-year (up 48.3 percent sequentially) to Rs 83.6 crore in the quarter gone by.
Asset quality was stable during the quarter with the gross non-performing assets (NPA) rising 10 basis points quarter-on-quarter (down 6 bps Y-o-Y) to 3.53 percent and net NPA flat sequentially (up 12 bps year-on-year) to 2.37 percent during July-September quarter.
Capital adequacy ratio (as per Basel III norms) declined to 12.08 percent from 12.97 percent on sequential basis.
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