KARNATAKA BANK

Karnataka Bank posted a dismal set of numbers for Q3FY17, both on the profitability as well as asset quality front.

The Bank’s net profit slipped 29% (YoY) at Rs.68 crore though its NII had shown a rise of 23% at Rs.376 crore. What really did it in was the increase in provisioning – it rose 59% (YoY) at Rs.101 crore.

In terms of asset quality, Gross NPA rose sharply from 3.64% to 4.30% (QoQ) and Net NPA was up from 2.63% to 2.99%.

The deposits of the bank during the quarter increased to Rs.57,435 crore, up16% (YoY) and Advances rose 9% at Rs.35,786 crore. Current account, savings account (CASA) deposits constituted 30.22% of total deposits v/s 25.23% (YoY). CAR stood at 13.19% v/s regulatory requirement of minimum 9%.