Private sector lender, Karnataka Bank has posted a 10.13 per cent rise in net profit at Rs 133.85 crore for the first quarter of the current fiscal. The bank had reported a net profit of Rs 121.54 crore in the April-June quarter of 2016-17, it said in a filing to the Bombay Stock Exchange. During the quarter under review, the total income of the bank increased to Rs 1,547.93 crore as against Rs 1,434.96 crore a year ago, it said in a regulatory filing.
Provisions to cover bad loans and contingencies increased to Rs 198.88 crore for the June quarter of 2017-18 from Rs 136.31 crore a year ago. In terms of asset quality, gross NPAs (non-performing assets) or bad loans rose to 4.34 per cent of gross loans as on June 30, 2017 from 3.92 per cent a year ago. Net NPAs were 3.20 per cent, up from 2.61 per cent a year ago. "The encouraging growth in advance and the resultant increase in operating profit are two major achievements which will set tone for future growth story," the bank's Managing Director and CEO Mahabaleshwara M S said.