Private sector lender Karnataka Bank has reported a whopping 27.6 percent growth in profit for quarter ended December 2017, with improving asset quality. The growth was driven by net interest income, operating income and other income.
Profit during the quarter increased to Rs 87.4 crore, up from Rs 68.5 crore in year-ago, the bank said in its filing.
Net interest income, the difference between interest earned and interest expended, grew by 20 percent to Rs 451.6 crore from Rs 376.5 crore YoY.
Asset quality improved as gross non-performing assets were lower at 3.97 percent compared to 4.13 percent in previous quarter and net NPA were also lower at 2.85 percent against 3.04 percent in Q2.
Other income (non-interest income) shot up 45.7 percent year-on-year to Rs 194.62 crore and operating profit jumped 87.3 percent to Rs 321.90 crore in Q3.
Provisions for bad loans fell sharply to Rs 196.4 crore for the quarter, from Rs 226 crore in previous quarter; but nearly doubled compared to Rs 100.60 crore in year-ago.
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