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Karnataka Bank
Karnataka Deputy Chief Minister D K Shivakumar on Saturday claimed that banks were not cooperating with the Central government's schemes aimed at supporting entrepreneurs, particularly those offering loans without guarantees or collateral. Speaking at the inauguration of the Karnataka Small Scale Industries Association's (KASSIA) Centre of Excellence and Innovation in Bengaluru, Shivakumar underlined the importance of giving the younger generation opportunities to grow. "KASSIA will succeed only if it exerts more pressure on the government than the large industries," he remarked. He criticised the banks for failing to support the Centre's annoucements. "The Central government makes grand announcements like providing loans without guarantees or collateral, but banks do not comply. They prefer lending to those with a proven track record and are hesitant to support emerging entrepreneurs," the Deputy CM said. He urged KASSIA office-bearers to actively work towards empowering the next
Karnataka Bank on Friday posted a 23 per cent decline in net profit to Rs 274 crore for the fourth quarter ended March 2024 due to a one-time staff cost increase. The private sector bank had earned a net profit of Rs 354 crore in the same quarter a year ago. The total income increased to Rs 2,620 crore during the quarter under review against Rs 2,365 crore in the same period last year, Karnataka Bank said in a regulatory filing. However, net interest income declined to Rs 834 crore during the period under review from Rs 860 crore in the corresponding quarter a year ago. The bank incurred a one-time staff cost of Rs 152 crore in the fourth quarter relating to enhanced actuarial provisions arising out of wage settlement, it said. On the asset quality side, the bank's gross non-performing assets (NPAs) moderated to 3.53 per cent of gross advances as of March 31, 2024, from 3.74 per cent at the end of March 2023. Net NPAs also declined to 1.58 per cent of the advances from 1.70 per c
Karnataka Bank on Thursday said it has raised around Rs 600 crore through qualified institutional placement by issuing shares to institutional investors. The qualified institutional placement (QIP) opened on March 21 and closed on March 27. "...The Committee of Directors at its meeting held today, approved the issue and allotment of 2,64,31,718 equity shares to 25 eligible qualified institutional buyers at the issue price of Rs 227 per equity share...aggregating to Rs 599.99 crore," the bank said in a regulatory filing. The institutions which bought shares in the QIP include HSBC Mutual Fund, Morgan Stanley Asia Singapore PTE, HSBC Global Investment Funds, SBI Life Insurance Company, Franklin India Smaller Companies Fund and Max Life Insurance Company. Shares of Karnataka Bank settled at Rs 225.10 apiece, down 1.53 per cent over the previous close on the BSE.
Private sector lender Karnataka Bank on Tuesday reported a 10 per cent rise in net profit to Rs 331 crore for the third quarter ended December 2023. The bank had earned a net profit of Rs 301 crore in the October-December quarter of 2022. The total income increased to Rs 2,439 crore in the third quarter of the current fiscal compared to Rs 2,055 crore in the year-ago period, Karnataka Bank said in a regulatory filing. In the latest quarter, the bank's interest income rose to Rs 2,113 crore from Rs 1,851 crore in the same period last fiscal. However, the net interest income declined to Rs 828 crore from Rs 835 crore at the end of the third quarter of last year. The gross non-performing asset (NPA) ratio declined to 3.64 per cent as of December 31, 2023. In the year-ago period, it stood at 3.28 per cent. However, the net NPA declined to 1.55 per cent compared to 1.66 per cent at the end of December 2022. The provision coverage ratio stood at 80.75 per cent at the end of December .