Media Release

Mangaluru, Jan 13: Karnataka Bank posted a net profit of Rsb135.37 crore for the third quarter of the current financial year with a growth rate of 9.93% as against Rs 123.14 crore of net profit earned during the corresponding quarter of the previous year. Further, for the nine months period that ended in December 2020, the bank posted a net profit of Rs 451.10 crore as against Rs 404.47 crore for the corresponding period of the last year with y-o-y growth rate of 11.53% profit earned during the corresponding quarter of the previous year. Further, for the

In the meeting of the Board of Directors held on Wednesday, here, through video-conferencing, the board approved the financial results for the quarter and nine months period that ended on December 31, 2020.

The operating profit during Q3 of the current financial year is Rs 437.96 crores.

Further, for the 9 months period of the current financial year, the operating profit stood at Rs 1.615.34 crore as against Rs 1265.23 crore for the corresponding period of the previous year and registered a y-o-y growth of 27.67%.

The bank clocked a business turnover of Rs1,27,013.55 crore as of December 31 with deposits of Rs 73,826.06 crore and an advance of Rs 53,187.49 crore. Retail and mid-corporate advances showed a y-o-y growth of 9.75%. 

Gross NPA of the bank moderated to 3.16% as of December 31, 2020, from 4.99% as of December 31, 2019. Similarly, Net NPA also came down to 1.74% from 3.75%.

Announcing the results at the bank's headquarters in the city, Mahabaleshwara M S, managing director and CEO of the bank said, "The strong numbers of Q3 depict the resilience of Karnataka Bank in spite of COVID-19 pandemic. Our efforts to realign the asset portfolio towards retail and mid-corporate advances is paying the desired result as the same has grown at the rate of 9.75% y-o-y resulting in increased NII which has grown at a rate of 14.85% y-o-y. Moreover, strong operating profit which grew at the rate of 27.67% y-o-y further strengthened the Provision Coverage Ratio (CR) to an all-time high of 80.51%. Asset Quality has almost remained stable despite the economic slowdown. Another significant achievement of this quarter is that the share of CASA deposits has increased to an all-time high of 30.07% of total deposits. All our cost efficiency measures have also yielded positive results as the overall cost declined by 2.35%. The digital loan sanctions one of the major initiatives under our 'KBL VIKAAS' transformation exercise and is showing positive traction and gaining popularity. Going forward, the bank will continue to focus on consistency and efficiency in its pursuit of emerging as 'The bank of the future'.