Karnataka Bank shares fall 3 pc after disappointing Q2 results

Shares of Karnataka Bank dropped nearly 3 per cent after the company reported a fall in net profit for the second quarter ended September of the current fiscal. The scrip declined 2.62 per cent to close at Rs 68.75 on the BSE. During the trade, it plunged 3.11 per cent to Rs 68.40 -- its 52-week low.

On the NSE, shares went lower by 2.90 per cent to close at Rs 68.60. Karnataka Bank on Tuesday reported a 5.3 per cent fall in net profit at Rs 105.91 crore for the second quarter ended September of the current fiscal as bad loans increased marginally.

The private sector bank had posted a net profit of Rs 111.86 crore in the corresponding July-September quarter of the previous fiscal ended March 2019. The asset quality of the bank showed a slight blip as gross non-performing assets (NPAs) rose to 4.78 per cent of the gross advances as on September 30, up from 4.66 per cent a year ago.

Similarly, net NPAs or bad loans rose to 3.48 per cent (Rs 1,863.11 crore) from 3 per cent (Rs 1,497.68 crore) a year ago.