6 June 2020: Karnataka Bank Ltd registered a net profit of ₹27.31 crore in the fourth quarter of 2019-20 as against a net profit of ₹61.73 crore in the corresponding period of the previous fiscal, recording a decline of 55.76 per cent.
The board of directors of the bank met on Saturday to consider the audited financial result for 2019-20.
The gross NPA of the bank stood at 4.82 per cent during the Q4 of 2019-20 as against 4.41 per cent in the corresponding period of 2018-19. The net NPA was at 3.08 per cent (2.95 per cent) during the period.
Provisions (other than tax) and contingencies increased to ₹356.50 crore during the Q4 of 2019-20 as against ₹217.73 crore in the corresponding period of the previous fiscal.
Quoting Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, a press release said that the financial year just concluded was no doubt challenging but the bank has been able to sail smooth.
He said the operational efficiency has further got momentum. As a result, stressed assets were further moderated during the financial year. The bank also focussed on resilience by improving the PCR (provision coverage ratio). The PCR improved to 64.70 per cent as on March 31 2020 2019-20 from 58.45 per cent as on March 31 2019, he said.
The net interest income (NII) of the bank stood at ₹529.3 crore (₹480.88 crore), and the other income at ₹440.37 crore (₹290.59 crore) during Q4 of 2019-20. The net interest margin (NIM) was at 2.86 per cent (2.87 per cent) during the quarter.
The bank recorded a net profit of ₹431.78 crore for 2019-20 as against 477.24 crore for 2018-19.
“Going forward even though COVID-19 pandemic era is a phase of uncertainties’, the bank is committed to ‘conserve, consolidate and emerge stronger’ by having a conservative approach,” Mahabaleshwara said.
Source: The Hindu Business Line