Karnataka Bank profitability boosts in Q1FY17

Karnataka Bank has declared its Q1FY17 results on July 29. The bank’s interest earned has increased by 2.57 per cent to Rs 1261 crore in Q1FY17 as compared to same period in previous financial year. Its net interest income has risen by 10.07 per cent to Rs 365 crore in Q1FY17 on a yearly basis. Karnataka Bank’s Net Interest Margin (NIM) has remained unchanged at 2.55 per cent in Q1FY17 as compared to same period in previous financial year. Karnataka Bank’s operating profit has risen by 9.58 per cent to Rs 262 crore in Q1FY17 on a yearly basis. The bank’s net profit has increased by 11.16 per cent to Rs 122 crore in Q1FY17 as compared to same period in previous fiscal year.

On asset quality front, Karnataka Bank’s bad loans have worsened in Q1FY17. The bank’s gross NPA has expanded by 66 basis points to 3.92 as of Q1FY17 as compared to same period in previous fiscal year. Its net NPA has also expanded by 56 basis points to 2.61 per cent as of Q1FY17 on a yearly basis.

Karnataka Bank has expanded its branch network to 733 and 1297 ATMs with 52 e-lobbies as of Q1FY17. The bank has plans to open 32 new branches and 203 ATMs by March 2017.

The share price of Karnataka Bank decreased by 4.56 per cent on bourses; and closed at Rs 146 on an intraday basis.

Karnataka Bank is engaged in providing a range of banking and financial services, including retail, corporate banking and para-banking activities in addition to treasury and foreign exchange business. The company operates in four business segments viz. Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations.