Karnataka Bank Q3 net profit up 27.4%

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The private sector lender's net profit in the corresponding quarter of 2016-17 stood at Rs 68.52 crore. The company posted net profit at INR 936.25 crore for December quarter.

Romesh Sobti, MD & CEO, IndusInd Bank said, "The Bank has continued to show a steadfast performance again in this quarter".

Its net interest margin (NIM) stood at 3.99 per cent for the current quarter as against 4 per cent in the corresponding quarter of the previous year.

The better earnings came on the back of a robust 20 per cent rise in net interest income (NII is interest earned minus interest expended) at Rs 1,894.81 crore against Rs 1578.42 crore in the year-ago period. Gross and NPAs were at ₹1,784.31 crore and ₹1,262.96 crore, respectively in Q3 of 2017-18 against ₹1,560.23 crore and ₹1,065.66 crore in third quarter of 2016-17, respectively.

Asset quality for the quarter remained stable over the quarter with GNPA's advancing by 8 bps over previous quarter, while on yoy basis 24 bps increase was witnessed.

Also, net profit stood at Rs 2,652.90 crores in nine month period of FY18, higher by 25% from Rs 2,116.28 crore in similar period of previous fiscal.

As far as the merger with Bharat Financial Inclusion is concerned, Sobti said the bank has already received approval from the Competition Commission of India, and is awaiting other approvals. Total GNPA's for the quarter rose by 54 per cent yoy to Rs. 1,498 crore.

However, provision and contingencies of the bank rose to Rs 196.40 crore in the December quarter compared to Rs 100.60 crore in the same period a year earlier.

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