Shares of Karnataka Bank soared 19 per cent in Wednesday’s trade after the lender posted an all-time high quarterly net profit Rs 411.47 crore for the September quarter.
The bank clocked a 228 per cent growth in the second quarter profit over the year-ago’s Rs 125.45 crore profit. The sharp surge in the quarterly profit was mainly on account of improved asset quality, healthy growth in advances, cost containment and efficiency enhancement efforts, the bank said.
Following the development, the scrip rose 19.08 per cent to hit a high of Rs 111.70 on BSE.
Managing Director & CEO Mahabaleshwara MS said: “Our all-time high Q2FY23 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”
In a filing, the bank said its net interest income (NII) jumped 26 per cent YoY to Rs 802.73 crore from Rs 637.10 crore in the year-ago quarter. Net Interest Margin (NIM) improved to 3.56 per cent from 3.15 per cent YoY.
Asset quality also improved, with gross non performing assets (NPAs) falling to 3.36 per cent from 4.03 per cent in June quarter. Net NPAs also declined to 1.72 per cent against 2.16 per cent sequentially. Gross NPA was as high as 4.52 per cent in the year-ago quarter. Net NPA stood at 2.85 per cent in the same quarter last year..
Deposits grew to Rs 81,633.40 crore from Rs 76,921.53 crore while advances grew to Rs 59,872.47 crore from Rs 54,341.57 crore. The CD ratio of the Bank stood at 73.34 per cent.
The lender said its capital adequacy ratio came in at 15.28 per cent compared with 14.48 per cent in the year-ago quarter.
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