Karnataka Bank recorded a net profit of ₹370.70 crore in the first quarter of 2023-24, against a profit of ₹114.18 crore in the corresponding period of 2022-23, registering a growth of 224.66 per cent.

The bank informed the stock exchanges that the board of the directors of the bank, which met on Thursday, approved the financial results for the quarter ended June 30.

The net interest income of the bank increased to ₹814.68 crore during Q1 of 2023-24, against ₹687.56 crore in Q1 of 2022-23. During the first quarter of FY24, other income of the bank stood at ₹323.84 crore (₹132.79 crore in Q1 of FY23).

contingencies

The bank’s provisions (other than tax) and contingencies stood at ₹151.57 crore (₹362.90 crore). A media statement said the loan book quality is steadily improving. Gross NPAs (non-performing assets) declined to 3.68 per cent in the first quarter of FY24 (4.03 per cent in Q1FY 23).

Net NPAs also declined to 1.43 per cent in Q1FY24 (2.16 per cent Q1 of 2022-23). Both gross and net NPAs also moderated compared to fourth quarter of 2022-23, it said.

The bank further strengthened its balance sheet by increasing provision coverage ratio to 83.47 per cent as on June 30 2023 from 80.86 per cent as on March 31, and 76.77 per cent as on June 30 2022.

It said that the capital adequacy ratio of the bank has further improved to 17 per cent in Q1 of 2023-24 (15.51 per cent in Q1 FY23).

Quoting Srikrishnan H, Managing Director and Chief Executive Officer of the bank, the statement said: “Karnataka Bank, with our strong fundamentals, is rightly positioned to leverage the franchise strengths and poised for accelerated growth. Having made the right investments in technology, we will re-align our processes and people to deliver in identified business areas, that is MSME, retail and agri. We will work towards creating tech-enabled business models, including partnering with new-age fintechs that will supplement our growth aspirations.”

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