Karnataka Bank: Q3 net profit grows; asset quality improves

Karnataka Bank: Q3 net profit grows; asset quality improves

Karnataka Bank reported a 10% increase in net profit at Rs 135.38 crore for the December quarter on account of a decline in bad loans.
The Mangalore-headquartered bank had reported a net profit of Rs 123.14 crore in the year-ago period.
However, total income of the bank declined to Rs 1,868.62 crore from Rs 1,993.68 crore in the same quarter a year ago.

The gross non-performing assets (NPAs) of the bank eased to 3.16% of assets from 4.99% in the year-ago period.
Similarly, net NPA ratio declined to 1.74% from 3.75% during September-December period of previous fiscal.
Provisions (other than tax) and contingencies fell to Rs 214.18 crore from Rs 314.70 crore in the third quarter of the previous fiscal.
The aggregate provision against the likely impact of Covid-19, including RBI mandated provision, as on 31st December, 2020 is Rs 148 crore.

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