Karnataka Bank Q4 Results: Net profit declines 22.48%; proposes 55% dividend

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Karnataka Bank Ltd recorded a net profit of ₹274.24 crore in the fourth quarter of 2023-24 against a net profit of ₹353.75 crore in the corresponding period of the previous fiscal, registering a decline of 22.48 per cent.

A media statement said that the bank incurred a one-time staff cost of ₹152.2 crore in the fourth quarter of 2023-24 relating to enhanced actuarial provisions arising out of 12th bi-partite settlement.

The bank recorded a net profit of ₹1306.28 crore in 2023-24 against ₹1180.24 crore in 2022-23, an increase of 10.68 per cent.

The board of directors of the bank, which met on Friday, approved the audited annual financial results for 2023-24 and proposed a dividend of 55 per cent for approval in the forthcoming annual general meeting.

The net interest income of the bank stood at ₹834.03 crore in the Q4 of 203-24 against ₹860.05 crore in the corresponding period of 2022-23. Other income of the bank increased to ₹419.42 crore in Q4FY24 against ₹395.24 crore in Q4FY23.

The net interest margin of the bank stood at 3.30 per cent during the fourth quarter of 2023-24 against 3.87 per cent in the corresponding period of the previous fiscal.

Business turnover

The bank’s business turnover stood at ₹1,71,059.49 crore as of March 31 2024, a year-on-year (y-o-y) growth of 15.06 per cent. Gross advances increased by 19.08 per cent y-o-y to ₹73,001.66 crore, while deposits grew 12.24 per cent y-o-y to ₹98,057.83 crore. CASA (current account savings account) deposits accounted for 31.97 per cent of total deposits.

Gross NPA (non-performing assets) improved to 3.53 per cent as on March 2024 when compared to 3.74 per cent as on March 2023, and net NPA (NNPA) improved to 1.58 per cent when compared to 1.70 per cent as on March 2023.

Standard restructured advances stood at ₹1,579 crore as on March 31 2024, which decreased from ₹2,571 crore as of March 31 2023. The statement said that the recoveries continue to be robust and were at similar levels during FY24 as compared to FY23 at approximately ₹280 crore.

Significant improvement

There is a significant improvement in the overall gross NPA and restructured portfolio, which moved from 11 per cent of gross advances as on FY22 to 7.9 per cent as on FY23 and to 5.7 per cent as on FY24.

Quoting Srikrishnan H, MD and CEO,Karnataka Bank, the statement said: “Karnataka Bank’s financial achievements are a testament to its dedicated and ongoing transformational changes. Through a concerted effort to enhance technology-based deliveries coupled with operational efficiency, we are forging a new path forward. With a cultural shift towards relevance, we have introduced a range of new products, redefined our technology architecture, built new partnerships, strengthened our management team and working on internal processes to be outbound and customer centric.”

The bank also successfully completed capital raising programme of ₹1,500 crore in a record six months that demonstrates investors’ confidence in our vision and strategic direction, he said.

Sekhar Rao, Executive Director of the bank, said the bank has demonstrated a strong financial performance with sustained margins as per guidance, even in a volatile market.