Karnataka Bank third quarter profit flat at ₹107 crore

Karnataka Bank posted flat net profit growth of Rs.106.94 crore during the third quarter of 2014-15 against Rs.106.7 crore in the corresponding period of the previous fiscal, on higher provisioning and employee costs.

Net interest income stood at Rs.302.05 crore (Rs.271.50 crore), and other income at Rs.162.83 crore (Rs.97.85 crore).

There was higher provisioning for actuarial liabilities on pension and gratuity.

Employee cost

The employee cost of the bank stood at Rs.187.72 crore (Rs.117.58 crore), and provisions (other than tax) and contingencies reached Rs.78.89 crore (Rs.40.41 crore) during the reporting quarter.

Gross and net NPA touched 3.44 per cent (3.65 per cent) and 2.41 per cent (2.23 per cent), respectively.

P Jayarama Bhat, Managing Director and Chief Executive Officer, told BusinessLine that the bank has, however, crossed the full last financial year’s profit in the first nine months of the current fiscal.

The net profit of the bank for the first nine months of the fiscal stood at Rs.317.03 crore (Rs.229.82 crore). Stating that there is a growth of 20.89 per cent in the sequential quarter, he said the bank recorded a net profit of Rs.88.46 crore in the September quarter as against Rs.106.94 crore in the December quarter.

Branch network

On the future outlook, he said the bank aims at a turnover of Rs.80,000 crore for 2014-15. “We are opening another 75 branches in some important places. All these should give us better business in the years to come,” he said.

On Tuesday, Karnataka Bank shares closed at Rs.144.60 on the BSE, down 2.33 per cent against the previous close of Rs.148.05.


Source : Thehindubusinessline