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Karnataka Bank Q4 PAT soars 171% to Rs 354 cr

27-May-23 16:17 Hrs IST

Total income jumped 28.8% to Rs 2,364.54 crore in the quarter ended 31 March 2023.

Net interest income (NII) for the quarter was at Rs 860.07 crore, up 31.01% from Rs 656.50 crore posted in Q4 FY22. Net interest margin (NIM) improved to 3.87% in Q4 FY23 as compared with 3.25% reported in the corresponding quarter previous year.

The bank's profit before tax (PBT) stood at Rs 432.50 crore in Q4 FY23, registering a growth of 52.2% YoY.

The bank's provisions (other than tax) and contingencies zoomed 164.06% to Rs 253.26 crore in Q4 FY23 as against Rs 95.91 crore in Q4 FY22.

Operating profit in Q4 FY23 was at Rs 685.54 crore in the fourth quarter of FY23, up 80.42% from Rs 379.97 crore in Q4 FY22.

For the full year, the bank's net profit soared 132% to Rs 1,180.24 cror on 14.5% rise in total income to Rs 8,212.81 crore in FY23 over FY22.

On asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 2,292.91crore as on 31 March 2023 as against Rs 2,250.82 crore as on 31 March 2022.

The ratio of gross NPAs declined to 3.74% as on 31 March 2023 from 3.90% as on 31 March 2022. The ratio of net NPAs reduced to 1.70% as on 31 March 2023 as compared to 2.42% as on 31 March 2022.

Provision coverage ratio (PCR) improved to 80.76% as on 31 March 2023 from 73.47% as on 31 March 2022.

As of 31 March 2023, the bank's business turnover stood at Rs 1,47,319.53 crore, YoY growth of 7.40%. Deposits grew 8.68% YoY to Rs 87,367.91 crore, while advances increased 5.58% YoY to Rs 59,951.62 crore. CASA deposits accounted for 32.97% of total deposits. CASA ratio remained constant at 32.97% as on 31 March 2023.

Capital adequacy stood at 17.45%, up by 179 bps YoY.

Sekhar Rao, managing director & CEO (interim) of Karnataka Bank, stated, ?I am pleased to say that for FY23, we've made significant progress in all fundamental KPIs, primarily in loan advances, expanding net interest margin (NIM), and maintaining a steady CASA base. These highpoints, backed by leading productivity metrics, embody our optimistic outlook as we move forward, showcased by our improved ROA from 0.56% in FY22 to 1.21% in FY23.

We've already made a beginning with our retail-centric strategy, as seen in the modest growth of our share of Retail Advances increase to 50.34% in Q4 FY23 from 48.08% in Q3 FY23. This shift towards retail lending represents our commitment to portfolio optimization for better asset returns (ROA) and equity (ROE), all while prioritising the delivery of sustainable value to our stakeholders.?

Meanwhile, the company's board has recommended dividend of Rs 5 per equity share for FY23, subject to the approval of the shareholders at the AGM.

Further, the board, based on the approval of the Reserve Bank of India (RBI), has appointed Srikrishnan Hari Hara Sarma as an additional director to take up the role of managing director & CEO of the bank for a period of three years effective from the date of his assuming charge.

Karnataka Bank is an Indian private sector bank based in Mangalore. As of 31 March 2023, the bank operates 901 branches, 871 ATMs, 603 cash recyclers and 586 e-lobbies/mini e-lobbies across 22 states and two union territories.

Shares of Karnataka Bank rallied 4.46% to close at Rs 143.90 on Friday, 26 May 2023.