Karnataka Bank recorded a net profit of ₹330.26 crore in the second quarter of FY24, against a profit of ₹411.63 crore, registering a decline of 19.77 per cent.

The meeting of the board of directors of the bank on Thursday approved the financial results for the quarter and the half year that ended September 30.

Net interest income of the bank stood at ₹822.41 crore in Q2 of FY24, against ₹802.73 crore in Q2 of FY23, recording a growth of 2.45 per cent. The net interest margin of the bank stood at 3.58 per cent in Q2 of FY24, against 3.78 per cent in Q2 of FY23.

During the second quarter of 2023-24, the gross NPAs (non-performing assets) of the bank increased to 3.47 per cent (3.36 per cent Q2 FY23), and net NPA reduced to 1.36 per cent (1.72 per cent).

The bank’s Capital Adequacy Ratio stood at 16.20 per cent as on September 30 2023, compared to 15.28 per cent as of September 30, 2022.

The business turnover of the bank touched 1.56 lakh crore (on gross basis) as of September 30, 2023.

Quoting Srikrishnan H, Managing Director and Chief Executive Officer of Karnataka Bank, said: “Our performance on key performance metrics reflect the strengthening of our fundamentals. With our preferential capital raise allotment process completed, we can look to expanding business volumes, invest into robust technology for customer deliveries, and provide more confidence to our stakeholders. We wish to thank our new institutional shareholders for reposing confidence and look forward to exciting times as we enter into the second century of unparalleled service across the country.”

Sekhar Rao, Executive Director of the bank, said in the face of evolving economic challenges, the bank has demonstrated resilience, adaptability, and steady growth in various aspects of its operations. “We remain dedicated to providing strong financial foundations for our customers and embracing new opportunities in the evolving financial landscape,” he said.

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