Karnataka Bank jumped 8.88 per cent to Rs 150.15 following a 105.14 per cent increase in net profit to Rs 300.68 crore and a 16.68 per cent increase in total income to Rs 2,055.31 crore in Q3 FY23 over Q3 FY22.
Net interest income climbed 34.07 per cent to Rs 834.76 crore in the quarter ended December 2022, up from Rs 622.65 crore in the same quarter last year. The net interest margin increased by 65 basis points to 3.81 per cent as of December 31, 2021, from 3.16 per cent.
In the quarter ending 31 December 2021, the bank’s profit before tax (PBT) increased by 68.5 per cent year on year to Rs 367 crore.
The bank’s provisions (other than tax) and contingencies increased 19 per cent in Q2 FY23 to Rs 164.87 crore from Rs 138.50 crore in Q2 FY22.
During the period, the asset quality also improved. The GNPA has fallen by 8 basis points to 3.28 per cent from 3.36 per cent in the previous quarter, September 2022. Similarly, the NNPA fell by 6 basis points to 1.66 per cent from 1.72 per cent in the preceding quarter, which ended in September 2022. The PCR has increased to 80.21 per cent from 73.66 per cent a year earlier.
As of 31 December 2022, the bank had a business turnover of Rs 1,47,128.51 crore, with a YoY growth rate of 9.79 per cent, deposits of Rs 84,596.40 crore, with a YoY growth rate of 7.86 per cent, and advances of Rs 62,532.11 crore, with a YoY growth rate of 12.51 per cent.
CASA deposits climbed by 9.5 per cent year on year. CASA share at 31.91 per cent, up 61 basis points year on year.
Capital adequacy was 15.13 per cent, up 98 basis points year on year. ROE increased by 733 basis points year on year to 14.74 per cent. ROA is 1.14 per cent, up 57 basis points year on year.
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Mahabaleshwara M S, managing director & CEO of the bank said, “The impressive all round performance of the Bank is on account of improved operational efficiency facilitated by various initiatives under KBL VIKAAS. The NII has gone up by 26.74 per cent. NIM has improved to an all time high of 3.63 per cent as compared to 3.15 per cent as on 31/12/21. Further, the Bank has also shown improvement in GNPA, NNPA indicating better asset quality. Further PCR has also improved to an all time high of 80.21 per cent. The consistent and stable performance has been the hallmark of the Bank, and going forward Bank will strive hard for its sustainability with higher scale.”
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