Karnataka Bank Q4 net profit up 14.83% at Rs31.36cr on lower interest and manpower costs in Mar-21 quarter

Karnataka Bank reported -12.48% yoy fall in total consolidated revenues in the Mar-21 quarter at Rs1,790.70cr

May 26, 2021 06:05 IST India Infoline News Service

Karnataka Bank
Karnataka Bank reported -12.48% yoy fall in total consolidated revenues in the Mar-21 quarter at Rs1,790.70cr. The bank reported a marginal yoy fall in retail banking revenues but a sharp fall in revenues from treasury operations and from corporate banking activity.

During the quarter, there was a sharp fall in the EBITDA contribution from corporate banking and treasury operations while the contribution to EBITDA from retail banking was up almost 9-fold. The sharp fall in interest costs in the quarter also helped on yoy basis.

Profit after tax (PAT) for the Mar-21 quarter was up 14.83% at Rs31.36cr. This was due to a sharp fall in interest costs and employee costs and a marginal fall in loan loss provisioning in the Mar-21 quarter. The net margins expanded from 1.33% to 1.75% in the Mar-21 quarter. Operating profit margins were also higher at 21.43% in Mar-21 quarter against 19.14%.

On a sequential basis, there has been a sharp spike in the gross NPA levels from 3.16% to 4.91% and during this period even the net NPAs have spiked sharply to 3.18%. The capital adequacy at 14.85% is just about sufficient and it will need large infusion of capital to expand its asset book in a meaningful way.

Financial highlights for Mar-21 compared yoy and sequentially

Karnataka Bank
Rs in Crore Mar-21 Mar-20 YOY Dec-20 QOQ
Total Income ₹ 1,790.70 ₹ 2,045.94 -12.48% ₹ 1,868.62 -4.17%
Operating Profit ₹ 383.69 ₹ 391.54 -2.00% ₹ 437.97 -12.39%
Net Profit ₹ 31.36 ₹ 27.31 14.83% ₹ 135.38 -76.84%
Diluted EPS ₹ 1.01 ₹ 0.88 ₹ 4.35
Operating Margins 21.43% 19.14% 23.44%
Net Margins 1.75% 1.33% 7.24%
Gross NPA Ratio 4.91% 4.82% 3.16%
Net NPA Ratio 3.18% 3.08% 1.74%
Return on Assets 0.15% 0.13% 0.64%
Capital Adequacy 14.85% 12.88% 13.83%

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