Karnataka Bank reports 171% growth in Q4 net profit, recommends dividend of ₹5 per share

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Karnataka Bank It recorded a net profit of Rs. 353.53 crore in the fourth quarter of 2022-23 as against a net profit of Rs. 130.20 crore in the corresponding period of the previous financial year, registering a growth of 171.53 per cent.

The bank recorded a net profit of Rs. 1,179.68 crore for the year 2022-23 as against Rs. 507.99 crore in 2021-22, registering a growth of 132.22 per cent.

The Board of Directors, which met on Friday, approved the annual audited financial results for the period ended March 31. It also recommended a dividend of Rs 5 per share (i.e. 50 per cent) of the net profit for the year ended. March 31, subject to approval by shareholders at the Bank’s annual general meeting.

During the fourth quarter of 2022-23, the net interest income of the bank was Rs. 860.07 crore (Rs. 656.50 crore in Q4 2021-22), and other income was Rs. 395.23 crore (Rs. 256.98 crore). The bank’s net interest margin was 3.87 percent (3.25 percent).

The bank provision coverage ratio (PCR) increased to 80.76 percent in 2022-23 from 73.47 percent in 2021-22. The capital-to-risk-weighted asset ratio (CRAR) under Basel III was 17.45 percent, up from 15.66 percent last year.

The bank’s total NPA (non-performing assets) fell to 3.74 percent during the fourth quarter of 2022-23 from 3.90 percent nearly a year earlier. The bank’s net NPA reached 1.70 percent during the fourth quarter of 2022-23, compared to 2.42 percent in the corresponding period of the previous fiscal year.

The Bank’s business turnover was ₹1,47,319.53 crore during 2022-23, with an annual growth of 7.40 per cent. Deposits grew 8.68 per cent YoY to INR 87,367.91 crore while advances increased 5.58 per cent YoY to INR 59,951.62 crores. Deposits of current accounts and savings accounts (current account) accounted for 32.97 percent of the total deposits.

Quoting Sekhar Rao, Managing Director and CEO (temporarily) of Bank of Karnataka, a media release said, “As we proudly mark a century of unwavering confidence, our performance for FY 23 is evidenced by strong turnover and headline numbers calculated on the basis of consistent improvements in Overall asset quality.”