Moneycontrol
Last Updated : Jan 11, 2019 02:35 PM IST | Source: Moneycontrol.com

Karnataka Bank Q3 profit jumps 61%, asset quality stable but provisions remain elevated

Provisions for bad loans during the quarter increased 8.2 percent sequentially and 6.4 percent on year to Rs 209 crore in quarter ended December 2018.

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Private sector lender Karnataka Bank has reported a whopping 60.6 percent on year increase in third quarter profit at Rs 140.4 crore, driven by other income and operating income. Asset quality stable but provisions remained elevated.

Profit during the quarter ended December 2017 stood at Rs 87.4 crore.

Net interest income grew by 8.1 percent year-on-year to Rs 488 crore in October-December quarter, the bank said.

Asset quality remained stable for the quarter. Gross non-performing assets as a percentage of gross advances were lower at 4.45 percent for the quarter against 4.66 percent in previous quarter and net NPA was unchanged at 3 percent on sequential basis.

Provisions for bad loans during the quarter increased 8.2 percent sequentially and 6.4 percent on year to Rs 209 crore in quarter ended December 2018, but provision coverage ratio contracted to 57.2 percent against 57.5 percent QoQ.

Capital adequacy ratio at the end of December quarter improved to 11.98 percent against 11.30 percent in September.

Other income or non-interest income in Q3 shot up 55 percent to Rs 301.4 crore and operating profit grew by 24.4 percent to Rs 400.4 crore compared to year-ago.

At 14:22 hours IST, the stock was quoting at Rs 115.60, up Rs 0.35, or 0.30 percent on the BSE.

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First Published on Jan 11, 2019 02:34 pm
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