Karnataka Bank Q3 Results: Net profit rises 10% to Rs 331 crore, asset quality deteriorates

Shares of the bank closed for trading nearly 5.41 percent down at Rs 266.70 apiece on BSE.

Karnataka Bank on January 23 reported a net profit of Rs 331 crore for the December quarter of the financial year 2023-24, up 10 percent from Rs 300.68 crore in the year-ago period.

The lender's net interest income (NII) contracted by 0.86 percent on-year to Rs 827.60 crore from Rs 834.76 crore.

The bank's asset quality deteriorated during the quarter, with gross non-performing asset (NPA) at 3.64 percent, up from 3.28 percent last year. Net NPA stood at 1.55 percent against 1.66 percent.

Shares of the bank closed for trading nearly 5.41 percent down at Rs 266.70 apiece on the BSE.

Bank has clocked a record business turnover of Rs 1,61,936.36 crore as on 31-12-2023, with a YoY growth rate of 9.22 percent.

Srikrishnan H, Managing Director & CEO of the Bank said, "Karnataka Bank's all-round performance can be attributed to improved operational efficiency and ongoing transformational changes undertaken by the Bank. 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 & Excellence in the Pvt. Banking space"