Karnataka Bank reports record-breaking net profit

Mangaluru: Karnataka Bank has reported a record annual consolidated net profit of Rs 1,179.7 crore for FY 2022-23, an increase from the previous year’s Rs 507.9 crore. The net profit for the fourth quarter ending March 2023 is Rs 353.5 crore, up by 171.5% from Rs 130.2 crore for the corresponding period in FY 2021-22.
During a meeting held in Mangaluru recently, the board of directors approved the audited annual financial results for the year ending March 31, 2023, and proposed a dividend of 50% for approval in the forthcoming annual general meeting.
As on March 31, 2023, the bank’s business turnover stood at Rs 1,47,319.5 crore, a year-on-year (YoY) growth of 7.4%. Deposits grew 8.6% YoY to Rs 87,367.9 crore, while advances increased 5.6% YoY to Rs 59,951.6 crore. CASA deposits accounted for 33% of the total deposits.
Significant improvements were noted in the bank’s PCR (provision coverage ratio), rising to 80.8% from 73.5% in 2022. Similarly, CRAR (capital to risk weighted assets ratio) under Basel III reached a record 17.5%, up from 15.7% last year.
Non-performing assets (NPA) moderated further, with gross NPAs at Rs 2,292.9 crore or 3.7% as of March 31, compared to Rs 2,250.8 crore or 3.9% last year. Net NPAs also showed a healthy trend, standing at Rs 1,021.3 crore or 1.7%, down from Rs 1,377 crore or 2.4% last year. The bank’s priority sector advances stood at 41.5% of total advances, comfortably surpassing the minimum target of 40% as specified by RBI, stated a release. Sekhar Rao, MD and CEO (interim) of Karnataka Bank, said the performance for FY 23 has demonstrated robust turnover and milestone bottom-line numbers, underpinned by consistent enhancements in overall asset quality.
Dharwad selected for 100% digitisation
The RBI has selected Dharwad district for strengthening the digital payment system on experimental basis and has fixed September 30, 2023, as the deadline for achieving 100% digitisation of bank transactions.
RBI officer Malay Biswas revealed this information at the meeting to review the performance of the banks in the district held at Dharwad DC’s office on Tuesday. tnn