Karnataka Bank: Resourceful banking
Shares of Karnataka Bank rallied more than 4% Wednesday after the lender reported scintillating performance for the fiscal second quarter to September 30.
The private sector lender reported a nearly 13% rise in net profit at Rs 119.44 crore for the September quarter as bad loans moderated. The bank had posted a net profit of Rs 105.91 crore in the July-September period of the previous fiscal.
Total income rose to Rs 1,933.52 crore in the quarter under review, against Rs 1,902.41 crore in the same period of 2019-20.
However, the interest income fell to Rs 1,603.71 crore from Rs 1,629.64 crore a year ago.
Income from other sources rose to Rs 329.81 crore from Rs 272.77 crore. The lender witnessed an improvement on the asset quality front, as the gross non-performing assets (NPAs) fell to 3.97% of the gross advances as on September 30, 2020, from 4.78% in the year-ago period.
In value terms, the gross NPA was down to Rs 2,188.80 crore from Rs 2,594.27 crore. Net NPAs or bad loans fell to 2.21% (Rs 1,194.60 crore) from 3.48% (Rs 1,863.11 crore).
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