Karnataka Bank reports 228 per cent hike in net profit during second quarter

Karnataka Bank

Karnataka Bank Ltd reported a net profit of 411.63 crore in the second quarter of 2022-23, up from 125.61 crore in the same quarter of 2021-22, a 227.70 per cent increase.

Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, said: “Our all-time high Q2 FY23 result represents the tipping point of the bank’s reinvigorated trajectory. Our disciplined execution and aggressive digitalisation, combined with our commitment to superior customer experience, is fortifying Karnataka Bank’s reputation for delivering sustained profitable growth. The milestone of reaching ₹411.47 crore of net profit earned during the quarter is the highest-ever quarterly profit earned by the bank.”

He stated that the bank’s half-yearly net profit of 525.52 crore during 2022-23 is also a new high, and that the bank has eclipsed last year’s whole year net profit of 507.99 crore in just six months of the current fiscal.

“The significant jump in net profit is mainly because of improved earnings, improved asset quality, healthy growth of advances, cost containment, and efficiency enhancement, among others. It is also noteworthy that our core fundamentals across all key performance parameters, such as net interest margin (NIM), provision coverage ratio (PCR), and CASA ratio, among others, have improved materially, signifying the arrival of a ‘New KBL’ as envisaged in our Transformation Journey ‘KBL-VIKAAS’,” he said.

The bank’s NPAs (non-performing assets) have also been decreased, with gross NPAs falling to 3.36 per cent in the second quarter of 2022-23, down from 4.52 per cent in the same period last year, and net NPAs falling to 1.72 per cent, down from 2.85 per cent.

Net interest income (NII) climbed by 26 per cent to 802.73 crore for the quarter ending September 2022, from 637.10 crore in the first quarter of 2021-22.

The NIM increased to 3.56 per cent in Q2 2022-23, up from 3.15 per cent in Q2 2021-22.

As of September 30, 2022, the bank’s revenue stood at 1,41,505.87 crore.

The Capital Adequacy Ratio was 15.28 per cent in Q2 compared to 14.48 per cent in the previous fiscal period.

The board of directors accepted the financial results for the quarter and half year ending September 30 at their meeting.

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