Karnataka Bank

Karnataka Bank posted a 9% (YoY) decline in net profit at Rs.97 crore while total income was almost status quo at R.1370 crore. The rise in tax outgo – from a write back of Rs.2.6 crore in previous Q3, it was an outgo of Rs.32 crore.

In terms of asset quality, both Gross as well as Net NPA had risen. Gross NPA was at 3.56% v/s 3.18% (QoQ) and Net NPA rose from 1.96% to 2.41%. Its provisioning for the quarter, sequentially rose 80% to Rs.63 crore while it fell 20% (YoY).

The Bank’s deposits rose 11% (YoY) and advances were up 8.5%. CASA deposits rose 17% (YoY0 and this constituted 25.23% of the total deposits v/s 23.97% in previous Q3. The capital adequacy ratio stood at 11.67% [under BASEL III] against the regulatory requirement of minimum 9%.

The Bank as network of 1,882 service outlets comprising of 702 branches and 1180 ATMs spread across India and is poised to increase its number of outlets to 2,000 by the end of March 2016