Karnataka Bank shares decline nearly 3% after lender's disappointing second quarter results

New Delhi: Shares of Karnataka Bank dropped nearly 3 percent after the company reported a fall in net profit for the second quarter ended September of the current fiscal. [caption id=“attachment_4748931” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The scrip declined 2.62 percent to close at Rs 68.75 on the BSE. During the trade, it plunged 3.11 percent to Rs 68.40 — its 52-week low. On the NSE, shares went lower by 2.90 percent to close at Rs 68.60. Karnataka Bank on Tuesday reported a 5.3 percent 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 percent of the gross advances as on 30 September, up from 4.66 percent a year ago. Similarly, net NPAs or bad loans rose to 3.48 percent (Rs 1,863.11 crore) from 3 percent (Rs 1,497.68 crore) a year ago.