Karnataka Bank reported record quarterly net profits of Rs.196.38 crore for the Jun-20 quarter. This surge in profits was driven by cost-cutting measures as well as healthy core income growth. On a YOY basis, the net profits grew by nearly 12%. Total Revenues for the Jun-20 quarter were also up by nearly 20% at Rs.2144 crore.

There was a surge in operating performance with the operating profit higher by 93% at Rs.677 crore. Even the net interest income or NII was up by 8.19% at Rs.535 crore. The gross NPAs were marginally up by 9 basis points at 4.64%, which is still on the higher side. However, adequate provisioning coverage ensured that net NPAs were lower at 3.01%.

Karnataka Bank has a capital adequacy ratio of 13.07% and it has improved by 37 bps over the previous year. Even the all important net interest margin or NIM has improved to 2.81%. This is still lower than top notch private banks that have NIMs of over 4%. Karnataka Bank reported robust growth in deposits and loans in a tough market.