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.
Source – Indiainfoline