Karnataka Bank announces net profit of Rs 370.70 crore for June quarter

Karnataka Bank has posted a net profit of Rs 370.70 crore during the first quarter of the current financial year as against Rs 114.18 crore recorded during the corresponding quarter of the previous year, with a year-on-year (YoY) growth rate of 224.66 per cent.

A meeting of the board of directors of the bank held here on Thursday approved the financial results for the quarter that ended June 30, 2023, a press release here said citing the figures.

The operating profit of the bank stood at Rs 601.17 crore and net interest income stood at Rs 814.68 crore during the quarter ended June 30.

The business turnover of the bank was at Rs 1,48,449.27 crore as on June 30, 2023, compared to Rs 1,38,936.17 crore in the previous year, registering a YoY growth of 6.85 per cent. The deposits of the bank stood at Rs 86,959.86 crore with a YoY growth of 7.92 per cent and advances at Rs 61,489.41 crore with a YoY growth of 5.36 per cent.

The gross NPAs declined to 3.68 per cent, compared to 4.03 per cent in the previous year. Similarly, net NPAs also declined to 1.43 per cent from 2.16 per cent in the corresponding Q1 of the previous year.

The bank is also making steady progress in its customer franchise building and has acquired 1.72 lakh new customer accounts in the quarter. The bank did well in the sale of mutual funds and co-branded credit card as well.

Commenting on the Q1 FY24 financial results, Managing Director and CEO H Srikrishnan said the bank is rightly positioned to leverage franchise strengths and is poised for accelerated growth.

Having made the right investments in technology, the bank will work towards creating tech-enabled business models including partnering with new-age FinTechs that will supplement its growth aspirations, he said.