Mangaluru: City based private sector bank – Karnataka Bank Ltd has posted a net profit of Rs 93.38 crore for Q2 of current financial year compared to Rs 123.82 crore second quarter of last financial year. However operating second quarter profit showed robust growth of 57.35% and improved to Rs 366.24 crore from Rs 232.75 crore [Q2 of FY 2016-17]. The board of directors at the meeting on Friday approved financial results for Q2 and H1 ended September 30.

Bank’s net interest income (NII) for half year increased by Rs 102.71 crore from Rs 761.94 crore to Rs 864.65 crore, registering y-o-y growth of 13.48%. Bank clocked total business of Rs 97,685.49 crore as on September 30, registering y-o-y growth of 8.89%. While deposits rose to Rs 56,558.45 crore registering y-o-y growth of 6.52%, advances rose to Rs 41,127.04 crore, a y-o-y growth of 12.34%, Mahabaleshwara M S, CEO and MD of the bank said.

Capital Adequacy Ratio stood at 12.46% [under BASEL III] against the regulatory requirement of minimum 9%. Gross non-performing assets (NPAs) stood at Rs 1,715.70 crore as on September 30 and constituted 4.13% of gross advances as against 4.34 % as on September 30, 2016. Net NPAs stood at Rs 1,246.81 crore as on September 30, constituting 3.04% of net advances as against 3.20% as on the same date last year.

Expressing satisfaction at Q2 results, Mahabaleshwara said, “Healthy growth in advances as evidenced by increased CD ratio [72.72%], higher operating profit [57.35%], moderate CASA, improved NII and NIM are favorable factors. Even though Asset quality side pressure is easing gradually, provision requirement deserves continued attention. All growth factors are showing positive traction and I’am optimistic of strong and sustainable growth going forward”.