MUMBAI: Mid-sized private sector lender Karnataka Bank has reported a muted set of numbers for the September quarter with a flat net profit that inched up by a meagre 1.76 per cent to Rs 336 crore weighed in by falling margin despite an improvement in asset quality.
In the year-ago period, the Mangaluru-based lender had booked Rs 330 crore of profit. The bank in a statement Wednesday said its asset quality improved considerably with gross NPAs falling ot 3.21 per cent from 3.54 per cent, while net NPAs inching down to 1.46 per cent from 1.66 per cent.
The total business of the bank rose to Rs 1,75,284 crore from Rs 1,56,468 crore, a growth of 12.03 per cent. Of this deposits stood at Rs 99,968 crore up 11.66 per cent from Rs 89,532 crore and advances stood at Rs 75,316 crore compared to Rs 66,936 crore, an increase of 12.52 per cent. The credit-to-deposit ratio stood at 75.34 per cent.
In spite of the healthy asset quality and loan growth and the resultant higher interest income, the key profitability gauge net interest margin has come down to 3.38 per cent from 3.65 per cent, Srikrishnan H, the managing director, said without offering an explanation. Net interest income rose to Rs 833.56 crore from Rs 822.41 crore, while fee-based income rose 13.3 per cent to Rs 222.75 crore from Rs 196.58 crore.