Shares of Karnataka Bank slipped over 3 percent to Rs 213 apiece on May 27 after the lender reported weak January-March quarter (Q4FY24) performance.
So far this year, the stock of this Mangaluru-headquarter lender declined over 7 percent, underperforming 6 percent rise in the benchmark Nifty 50 index. Earlier, Karnataka Bank shares had hit 52-week high of Rs 286 per share on January 20, 2024.
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Karnataka Bank's net profit fell by 22.5 percent year-on-year (YoY) to Rs 272 crore in Q4FY24, while net interest income declined by 3 percent to Rs 834 crore.
The lender's asset quality deteriorated as well. Its net non-performing assets (NPA) came in at 1.58 percent in Q4FY24 as against 1.55 percent in the quarter ago period. Meanwhile, gross NPA stood at 3.53 percent in Q4FY24 as against 3.64 percent in the December quarter.
The net interest margin of the bank stood at 3.30 percent in Q4FY24, as against 3.87 percent in the corresponding period of the previous fiscal.
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The board recommended a dividend of Rs 5.5 per share for FY24, subject to shareholders' approval. The record date to consider eligibility of shareholders and payment of dividend will be considered in due course of time.
Earlier, RBI had imposed monetary penalty of Rs 59.10 lakh on Karnataka Bank for rule violations.
The penalty on Karnataka Bank was imposed as bank had opened savings deposit accounts in the name of certain ineligible entities and failed to review or renew certain loan accounts within the prescribed period and yet did not classify these accounts as non-performing assets.
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