Karnataka Bank Q4 results: Net profit up 171.5%, dividend declared

The Bank's annual consolidated net profit stood at Rs 1,179.68 crore for FY23

Mangalore-based private sector lender, Karnataka Bank has reported a net profit of Rs 353.53 crore for the fourth quarter of the financial year 2022-23 (Q4FY23), up by 171.53 per cent from Rs 130.20 crore for the corresponding period in FY 2021-22.

The Bank's annual consolidated net profit stood at Rs 1,179.68 crore for FY 2022-23, a substantial increase from the previous year's Rs 507.99 crore. This is despite a sharp increase in provisions, and also gross NPA jumped sequentially, the bank said in a press release.

According to the Bank, as of March 31, 2023, the business turnover stood at Rs 147,319.53 crore, a year-on-year growth of 7.40 per cent. Deposits grew 8.68 per cent YoY to Rs 87,367.91 crore, while advances increased 5.58 per cent YoY to Rs 59,951.62 crore.

Net interest income (NII), which is the difference between interest earned and expended, came in at Rs 860.05 crore in Q4FY23, whish is 27.15 per cent more than NII of Rs 656.49 crore in Q4FY22. 

In the quarter under review, provisions and contingencies stood at Rs 253.26 crore, rising by 164.06 per cent from Rs 95.91 crore in Q4FY22 and also up by 53.61 per cent from provisions of Rs 164.87 crore witnessed in the December 2022 quarter.

In a meeting held on Friday, the bank's board members recommended a dividend of Rs 5 per share (50 per cent) out of the net profits for the year ended March 31, 2023 subject to the approval of the shareholders at the annual general meeting. The record and payment date for the dividend will be announced in due course.

Sekhar Rao, Managing Director & CEO (Interim) of Karnataka Bank said in the statement, “As we proudly mark a century of unwavering trust, our performance for FY23 is demonstrated through robust turnover and milestone bottom-line numbers, underpinned by consistent enhancements in overall Asset Quality."