Karnataka Bank posted a net profit of Rs 370.7 crore for the first quarter ending June 30, 2023, up from 114.18 crore in the same period last year, a year-on-year increase of 224.66 per cent.
According to a news statement, the Board of Directors accepted the financial results for the quarter ended June 30 at their meeting in Mangalore.
In Q1, the bank’s operational profit was 601.17 crore, and its net interest income was 814.68 crore. The business turnover was 1,48,449.27 crore, compared to 1,38,936.17 crore in the first quarter of 2022-23. The bank’s deposits were 86,959.86 crore, up 7.92 per cent YoY, while advances were 61,489.41 crore, up 5.36 per cent YoY.
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The bank’s loan book quality has progressively improved, with gross NPAs falling to 3.68 per cent from 4.03 per cent in Q1 2022-23 and net NPAs falling to 1.43 per cent from 2.16 per cent. During the quarter, it added 1.72 lakh new client accounts.
The bank’s capital adequacy ratio has increased to 17 per cent, up from 15.51 per cent on June 30, 2022. It reinforced the balance sheet even more by raising the Provision Coverage Ratio to 83.47 per cent from 80.86 per cent on March 31, 2023 and 76.77 per cent on June 30, 2022.
Srikrishnan Hariharan, MD and CEO, Karnataka Bank said, “Karnataka Bank, with our strong fundamentals, is rightly positioned to leverage the franchise strengths and poised for accelerated growth. Having made the right investments in technology, we will re-align our processes and people to deliver in identified business areas.”
