Karnataka Bank reports 13% growth in quarterly profits

Bengaluru: Private sector lender Karnataka Bank posted a net profit of Rs 316 crore for the half year ended September 2020, registering a 12.23% growth over the same period last year. The bank reported profits of Rs 119.35 crore for the September quarter, recording a 12.69% growth over the same quarter last year.

The business turnover of the bank touched Rs 1,27,021.51 crore as on September end, registering a 2.72% growth on year-on-year basis. The deposits of the Bank grew from Rs 70,189.65 crore to Rs 72,922.58 crore and advances grew from Rs 53,468.42 crore to Rs 54,098.93 crore, according to a press release. Gross NPAs declined to 3.97% compared to 4.78% as on September 30. Similarly, Net NPAs also declined to 2.21% from 3.48%, the release added.

Bank's managing director Mahabaleshwara MS said they have been able to keep the bottom line intact with a steady growth of 12.23% in net profit, improving the asset quality significantly.

"The Bank has been successful in withering away the impact of Covid-19 pandemic as the retail and mid corporate advances have also grown at 8.53% and 16.52%, respectively and share of CASA deposits also rose to 29.17% of total deposits."