Mangalore based private sector lender, Karnataka Bank has recorded a 185.27 per cent growth in net profit at Rs 117.19 crore in the second quarter of FY12-13 as compared to Rs 41.08 crore reported in the corresponding quarter of the last fiscal.
Mr. P Jayarama Bhat, Managing Director of the bank said the growth in net profit was due to growth in operating profit, interest spread and reduced provisioning for NPAs.
The operating profit for the second quarter went up 36.04% to Rs 158.77 crore against Rs 116.17 crore in the corresponding period last year.
Mr. Bhat further added that the interest spread has increased by 37 bps. Interest spread is the difference between the cost of deposits and the yield on advances. The net margin increased from 2.40 per cent to 2.60 per cent.
Mr. Bhat also said that the bank is aiming to reduce the gross NPA to 2.50-2.75 per cent. During the second quarter, the gross NPA was 3.22 per cent (earlier 4.01 per cent) and net NPA stood at 2.08 per cent (earlier 2.22 per cent).