Karnataka Bank Ltd recorded a net profit of ₹411.63 crore in the second quarter of 2022-23 against ₹125.61 crore in the corresponding quarter of 2021-22, registering a growth of 227.70 per cent.
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.”
Stating that ₹525.52 crore of half-yearly net profit during 2022-23 is also a new high, he said, the bank has surpassed the last year’s total annual 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 NPAs (non-performing assets) of the bank have also further moderated as the gross NPAs reduced to 3.36 per cent during the second quarter of 2022-23 against 4.52 per cent in the corresponding period of 2021-22, and net NPAs reduced to 1.72 per cent against 2.85 per cent during the above-mentioned periods.
Jump in NII
Net interest income (NII) increased to ₹802.73 crore for the quarter ending September 2022 against ₹637.10 crore in Q1 of 2021-22, recording a growth of 26 per cent.
The NIM improved to 3.56 per cent during Q2 of 2022-23 from 3.15 per cent in Q2 of 2021-22.
The business turnover of the bank touched ₹1,41,505.87 crore as of September 30 2022.
Capital Adequacy Ratio stood at 15.28 per cent in Q2 against 14.48 per cent in the corresponding period of the previous fiscal.
At the meeting of the board of directors, the board approved the financial results for the quarter and the half year that ended September 30.