Karnataka Bank net rises to ₹62 cr in Q4

Karnataka Bank net rises to ₹62 cr in Q4

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Karnataka Bank registered a net profit of 61.73 crore in the fourth quarter of 2018-19, up from 11 crore in the corresponding period of the previous fiscal, recording a growth of 461.18 per cent.

The bank recorded a net profit of 477.24 crore for 2018-19, against 452.26 crore in 2017-18, posting a growth of 46.57 per cent.

The board of directors of the bank, which met on Monday to consider the audited financial result for 2018-19, proposed a dividend of 35 per cent for 2018-19.

Speaking to BusinessLine after the board meeting, Mahabaleshwara MS, Managing Director and CEO of the bank, attributed the growth in net profit to the reduction in the provision for non-performing assets (NPAs) during the year. “We had made a provision of 1,018 crore during 2017-18. The provision was at 763 crore during 2018-19,” he said.

Gross NPAs of the bank moderated to 4.41 per cent during Q4 of 2018-19, against 4.92 per cent in the corresponding period of 2017-18. The net NPA was contained below 3 per cent at 2.95 per cent (2.96 per cent) during the period, he said.

During Q4 of 2018-19, slippage was at 402 crore and upgradation at 292 crore. However, the slippage stood at 1,038 crore, and upgradation at 446 crore during the March quarter of 2017-18.

Net interest income (NII) of the bank stood at 480.88 crore (541.51 crore), and other income at 290.59 crore (294.51 crore) during Q4 of 2018-19. Net interest margin came down to 2.87 per cent (3.54 per cent) during the quarter.