Karnataka Bank Ltd posted a net profit of ₹411.63 crore in the second quarter of 2022-23 as against ₹125.61 crore in the same quarter of 2021-22, registering a growth of 227.70 per cent.
Mahabaleshwara MS, the bank’s Managing Director and Chief Executive Officer, said: “Our all-time high Q2 FY23 results represent the culmination of the bank’s revitalized trajectory. Our disciplined execution and aggressive digitization, combined with our commitment to superior customer experience, cement Karnataka Bank’s reputation for delivering sustainable profitable growth. The achievement of ₹411.47 crore net profit earned during the quarter was the highest quarterly profit earned by the bank.”
Stating that the ₹525.52 crore half-year net profit in 2022-23 was also a new high, he said, the bank had surpassed last year’s total annual net profit of ₹507.99 crore in just six months of the current fiscal.
“The significant increase in net profit is due to increased revenue, improved asset quality, healthy advance growth, cost containment and improved efficiency, among others. It is also worth noting that our core fundamentals across all key performance parameters, such as net interest margin (NIM), provision protection ratio (PCR) and CASA ratio, among others, have improved materially, signaling the arrival of the ‘New KBL’ as envisioned in Our Transformation Journey ‘KBL-VIKAAS’,” he said.
Bank NPAs (non-performing assets) have also moderated further as gross NPAs reduced to 3.36 per cent in the second quarter of 2022-23 compared to 4.52 per cent in the same period of 2021-22, and net NPAs reduced to 1.72 per cent compared to 2.85 per cent in the period stated in above.
Jump in NII
Net interest income (NII) rose to ₹802.73 crore for the quarter ended September 2022 as against ₹637.10 crore in Q1 2021-22, registering a growth of 26 per cent.
NIM increased to 3.56 percent in Q2 2022-23 from 3.15 percent in Q2 2021-22.
The bank’s business turnover reached ₹1,41,505.87 crore as on September 30, 2022.
The Capital Adequacy Ratio stood at 15.28 percent in Q2 compared to 14.48 percent in the same period of the previous fiscal.
At the board meeting, the board approved the financial results for the quarter and a half year ended September 30.