Karnataka Bank Reports a Challenging Quarter Despite Asset Quality Improvement
Karnataka Bank recorded a 27% drop in net profit for the June quarter, with profits falling to Rs 290 crore. Interest income decreased, affecting the net interest margin. However, asset quality improved, with lower gross and net NPAs. Capital adequacy also strengthened, despite increased provisions.
- Country:
- India
Karnataka Bank has reported a significant 27% decline in net profit for the June quarter, posting Rs 290 crore due to moderating interest income.
Compared to the same period last year, when the bank earned Rs 400 crore, the current financial metrics reflect a challenging period.
Despite the downturn in profit and a reduced net interest margin to 2.82%, the bank noted a positive development in asset quality, with gross non-performing assets dropping to 3.46% and an increase in its capital adequacy ratio to 20.46%.
(With inputs from agencies.)
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