Karnataka Bank shares tank nearly 9% on disappointing Q1 numbers

Stocks of Karnataka Bank plunged nearly 9% on Monday as the company reported 10% decline in net profit for the April-June quarter of the current fiscal.

The scrip of the private sector bank tumbled 8.74% to end at Rs 140.40 on the BSE. During the day, it dipped 9.42% to Rs 139.35.

At the NSE, shares of Karnataka Bank fell sharply by 8.77% to Rs 140.30 at close.

The company''s market capitalisation went down by Rs 253.17 crore to Rs 2,645.83 crore.

Private sector lender Karnataka Bank on Friday reported 10% decline in net profit at Rs 109.34 crore for the April-June quarter of the current fiscal.

It had posted Rs 121.63 crore net profit in the first quarter of 2014-15.

However, the total income of the bank has increased to Rs 1,348.17 crore during the April-June quarter of the current fiscal, from Rs 1,254.24 crore in the same period of last fiscal, Karnataka Bank had said in a filing to the BSE.

Gross non-performing assets (NPAs), as a proportion of advances, decreased to 3.26% in the first quarter, as against 3.43% in the same period of previous fiscal.

Net NPAs also declined to 2.05% from 2.37% at the end of June, 2014.