Karnataka Bank Ltd recorded a net profit of ₹331.08 crore in the third quarter of 2023-24 against a net profit of ₹300.68 crore in the corresponding period of the previous fiscal, registering a growth of 10.11 per cent.

During the third quarter of 2023-24, the net interest income of the bank stood at ₹827.60 crore (₹834.76 crore in Q3 of 2022-23), and other income at ₹326.08 crore (₹204.51 crore).

The gross non-performing assets (NPA) increased by 36 basis points from 3.28 per cent in Q3 of 2022-23 to 3.64 per cent in the corresponding period of the current fiscal, and the net NPA declined from 1.66 per cent in Q3 2022-23 to 1.55 per cent in Q3 2023-24.

Provision coverage ratio of the bank was at 80.75 per cent in Q3 (80.21 per cent in Q3 of 2022-23).

Quoting Srikrishnan H, Managing Director and Chief Executive Officer of the bank, a media statement said the Karnataka Bank’s all round performance can be attributed to improved operational efficiency and ongoing transformational changes undertaken by it.

“We have consciously worked towards a cultural shift to be more relevant and launched several new products, improved our technology platforms and internal processes. In the last quarter, we expanded our offerings and acquisition strategy internally and through NBFCs / fintech collaborations as well. We are on the right growth trajectory in our centenary year, proudly reflecting upon a century of unwavering commitment to trust and excellence in the private banking space,” he said.

Sekhar Rao, Executive Director of the bank, said Karnataka Bank has not only showcased commendable financial results but has also made significant strides in leveraging technology to enhance operational efficiency and customer engagement.

Fund raising

Meanwhile, a meeting of the board of the directors of Karnataka Bank Ltd will be held on January 27 to consider proposals for fund raising.

The board of directors of the bank at its meeting held on September 22, 2023 had approved to raise equity capital for up to an amount of ₹1,500 crore. Accordingly, the bank had raised approximately ₹800 crore by way of preferential issue of equity shares on October 26, 2023.

The bank informed the stock exchanges on Tuesday that “the board of directors, at its meeting scheduled on January 27, will consider, inter alia, proposals for fund raising by way of issue of equity shares by way of qualified institutional placement, preferential issue, rights issue or any other permissible mode of capital issue, in one or multiple tranches, in any combination, to eligible investors, subject to such necessary regulatory / statutory approvals as the case maybe and shareholders’ approval, at such price or prices as may be permissible under applicable law, within the overall limit of up to ₹1,500 crore of capital issue as approved by the board of directors on September 22, 2023, and remaining un-utilised, as on date and to approve ancillary actions including convening of shareholders meeting through extraordinary general meeting or postal ballot mode for the above mentioned fund raising subject to such regulatory/statutory approvals as may be required.”