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Karnataka Bank registered a net profit of ₹130.20 crore in the fourth quarter of 2021-22 as against a net profit of ₹31.36 crore in the corresponding period of the previous fiscal, recording a growth of 315.18 per cent.
The board of directors, which met on Friday, approved the audited annual financial results for the period ended March 31 and also recommended a dividend of 40 per cent to be approved in the ensuing annual general meeting.
Net interest income up
During the fourth quarter, the net interest income of the bank stood at ₹656.50 crore (₹459.41 crore), and the net interest margin of the bank stood at 3.25 per cent (2.41 per cent).
The bank registered a net profit of ₹507.99 crore in 2021-22 as against ₹482.46 crore in 2020-21, recording a growth of 5.29 per cent.
Speaking to BusinessLine , Mahabaleshwara MS, Managing Director and Chief Executive Officer, said the bank has created a new record of declaring net profit of more than ₹100 crore in each of the quarters of 2021-22. As a result, the bank’s net profit for the year has also crossed ₹500 crore.
Provision coverage ratio (PCR) of the bank has reached 73.47 per cent (69.99 per cent) of CRAR (capital to risk weighted asset ratio). The CRAR of the bank stood at 15.66 per cent (14.85 per cent).
He said the overall asset quality of the bank improved significantly as the gross NPA (non-performing assets) of the bank reduced to 3.90 per cent from 4.91 per cent about a year back.
The gross NPAs stood at ₹2,250.82 crore as of March 31, 2022 as against ₹2,588.41 crore as on March 31, 2021.
Net NPA also reduced to 2.42 per cent from 3.18 per cent a year ago. The net NPAs moderated to ₹1,376.97 crore as on March 31, 2022 from ₹1,645.05 crore as on March 31, 2021.
Credit cost
Mahabaleshwara said the overall credit cost has also come down to 1.04 per cent for the fiscal from 2.38 per cent about a year back. The cost of deposit, which was at 5.29 per cent about a year back, is at 4.66 per cent now. So on account of all these there is a significant improvement in the profit, he said.
“In all the areas of fundamentals, the bank has shown significant growth and improvement, and as a result we have proposed dividend of 40 per cent,” he said.
On Friday, the scrip of Karnataka Bank closed at ₹60.30 on BSE, up by 0.92 per cent, against the previous close of ₹59.75.
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