Karnataka Bank has declared a robust half-yearly net profit of Rs 700.96 crore, marking a 33.31% year-on-year increase. This notable rise in profits is up from the previous year’s figure of Rs. 525.81 crore for the same period. The announcement came after a meeting of the Board of Directors in Mangaluru, where the financial outcomes for both the quarter and half year ending September 30, 2023, were approved.

Impressive Growth for Karnataka Bank with 33.31% Increase in Net Profit

For the quarter ending in September 2023, Karnataka Bank reported a net profit of Rs 330.26 crore, which shows a variance compared to the Rs 411.63 crore from the corresponding quarter of the previous year. However, the bank has experienced a positive trend in Net Interest Income, which has seen a 2.45% uplift to Rs 822.41 crore from Rs 802.73 crore.

Karnataka Bank’s Strong Half-Yearly Performance Signals Upward Financial Trend

The bank has also reported an improvement in asset quality, with Gross Non-Performing Assets (GNPAs) declining to 3.47% from 3.68% as of June 30, 2023, and Net Non-Performing Assets (NNPAs) dropping to 1.36% from 1.43% within the same timeframe. This marks a significant recovery from the GNPA and NNPA figures reported as of September 30, 2022.

Moreover, Karnataka Bank’s overall business turnover has achieved new heights, reaching Rs. 1,56,467.71 crore. The year-on-year growth is evident with deposits increasing to Rs. 89,531.73 crore from Rs. 81,633.66 crore, and gross advances climbing to Rs. 66,935.98 crore from Rs. 60,991.24 crore, reflecting a solid Credit-Deposit (CD) ratio of 73.65%.

A key financial health indicator, the Capital Adequacy Ratio, stands at 16.20%, an improvement from 15.28% in the previous year. Following a Preferential Allotment capital injection of Rs. 800 Crore, the bank expects an even stronger capital adequacy position. The Net Interest Margin (NIM) too has shown growth, rising to 3.63% from 3.56%.

Srikrishnan H, Managing Director & CEO of Karnataka Bank, expressed contentment with the bank’s Q2 FY24 performance, highlighting the enhanced fundamentals and the completed Preferential Capital raise which is poised to bolster business volumes and tech investment. The CEO conveyed gratitude to new institutional shareholders and anticipated a future of continued exceptional service.

  Banking industry news, India, Karnataka Bank, Srikrishnan H