Recommends Rs 3.50 per share dividend
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.