New Delhi, Aug 12 (PTI) Private sector Karnataka on Tuesday posted a 27 per cent fall in net profit at Rs 290 crore for the June quarter as interest income moderated.
The bank had earned a net profit of Rs
400 crore in the year-ago period.
Total income rose to Rs 2,620 crore during the quarter, from Rs 2,557 crore a year ago, Karnataka Bank said in a regulatory filing.
Interest earned by the bank declined to Rs 2,261 crore, as compared to Rs 2,278 crore in the June quarter of FY25.
Net interest margin of the bank also moderated to 2.82 per cent as compared to 3.54 per cent a year earlier.
Operating profit also fell to Rs 467 crore from Rs 559 crore in the same period last year.
On the asset quality front, the bank witnessed an improvement with gross non-performing assets (NPAs) declining to 3.46 per cent of gross advances at the end of June quarter, from 3.54 per cent a year ago.
Similarly, net NPAs, or bad loans, fell to 1.44 per cent from 1.66 per cent.
However, provisions and contingencies rose significantly to Rs 111 crore during the first quarter as compared to Rs 40 crore in the same period a year ago.
Provision Coverage Ratio as at June 30, 2025, increased to 81.11 per cent as compared to 77.97 per cent as at June 30, 2024.
Capital adequacy ratio of the bank improved to 20.46 per cent, from 17.64 per cent in the same quarter of FY25. PTI DP TRB
