Karnataka Bank Q2 net profit down 25% to Rs93.38 crore

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Mumbai: Karnataka Bank Ltd on Friday said its second-quarter net profit fell 24.58% on the back of higher provisioning. Net profit fell to Rs93.38 crore for the three months ended 30 September from Rs123.82 crore in the same quarter last year.

Profit was lower than the Rs131 crore estimated by a Bloomberg poll of two analysts.

Despite this, the bank increased provisions during the quarter to Rs225.98 crore as against Rs130.55 crore in the year-ago quarter. In the April-June quarter, the bank had set aside Rs198.88 crore in provisions.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 10.82% to Rs440.24 crore from Rs397.25 crore in the corresponding period last year.

Other income, which includes core fee income, rose 30.64% to Rs247.82 crore in the three months ended 30 September from Rs189.70 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 4.13% in the September quarter compared with 4.34% in the June quarter and 3.64% in the year ago September quarter.

Post-provision, the net NPA ratio was at 3.04% against 3.20% in the April-June quarter and 2.63% in the year ago quarter.