InvestorQ : How were the quarterly results of Karnataka Bank for the Sep-20 quarter?
shrinidhi Rajan made post

How were the quarterly results of Karnataka Bank for the Sep-20 quarter?

Answer
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1 week ago


Among India’s foremost privately owned banks, Karnataka Bank reported 12.23% rise in net profit at Rs.316 crore for the first half of the fiscal year ending on Sep-20. This was supported by a proportionate growth in the business overall.

If you just look at the September 2020 quarter, the net profits of the bank were 12.7% higher at Rs.119.35 crore. Among other banking parameters, the quarter saw deposits of the Bank grow to Rs.72,923 crore and the total advances grow to Rs.54,099 crore.

There was also clear traction on the asset quality management front for the bank. For example, the gross NPAs of the bank fell from 4.78% to 3.97% on a yoy basis in Sep-20 quarter while the net NPAs fell from 3.48% to 2.21%.

Karnataka Bank also witnessed its share of CASA deposits rising to 29.17% of its total deposit mix. However, one can argue that this is still very small compared to most of the larger private bank standards. It looks like the bank has recovered from COVID and poised to grow.