Karnataka Bank Q3 PAT Boosted By 33% On YoY

Karnataka Bank (KBL) posted better financial performance on top-line and bottom-line front for the third quarter in FY14 on Y-o-Y basis, however its NPA remained under pressure on sequential basis. The bank's net interest income (NII) performed well, jumped by 19% to Rs 271.5 crore on yearly basis. Other income also showed a considerable growth, reached at Rs 97.85 crore against Rs 86 crore in Q3FY13.

Out of the three major revenue contributing segments of KBL treasury, corporate and retail banking segment, its corporate banking segment has outperformed during the quarter. KBL's corporate banking segment registered a growth of about 22% on YoY basis. The other major revenue contributor retail banking also increased by a significant proportion during the December quarter in FY14. Whereas its treasury segment showed marginal growth for the said period.

On expenses front, its operating expenses, increased to Rs 200.1 crore during the quarter on YoY basis, primarily due to the increase in employee cost by Rs 23.5 crore to Rs 117.6 crore.

Further, backed by the increase in NII and lower tax expenses, profit after tax boosted to Rs 106.7 crore by showing a jump of 33% over the last year similar period.

On absolute basis, the asset quality of bank has deteriorated on sequential basis. Gross non performing asset (NPA) and net NPA of bank increased by 3.61% and 1.07% to Rs 996.81 crore and Rs 599.44 crore respectively.

However, in terms of percentage of gross advances too, the asset quality of bank has not improved on sequential basis. Its gross NPA increased by 6 basis points to 3.65% and net NPA improved marginally by 2 basis points to 2.23%.