Karnatka Bank slumps on poor Q3

Karnataka Bank posted a dismal set of numbers for Q3FY17, both on the profitability as well as asset quality front.

The Bank’s net profit slipped 29% (YoY) at Rs.68 crore though its NII had shown a rise of 23% at Rs.376 crore. What really did it in was the increase in provisioning – it rose 59% (YoY) at Rs.101 crore.

In terms of asset quality, Gross NPA rose sharply from 3.64% to 4.30% (QoQ) and Net NPA was up from 2.63% to 2.99%.

Obviously, the market is unhappy and the stock figures amongst the top losers on the BSE, going down almost 6.5% to Rs.112.10. Its 52-week low is at Rs.69.07.