Karnataka Bank on Thursday, August 3, announced posting ₹370.7 crore net profit for the first quarter ending June 30, 2023 as against ₹114.18 crore registered during Q1 of 2022-23, a year-on-year growth of 224.66%.
The Board of Directors approved the financial results for the quarter ended June 30 at their meeting held in Mangaluru, said a press release.
The operating profit of the bank stood at ₹601.17 crore and the net interest income was at ₹814.68 crore in Q1. The business turnover was at ₹1,48,449.27 crore compared to ₹1,38,936.17 crore of Q1 of 2022-23. The deposits of the bank stood at ₹86,959.86 crore with a YoY growth of 7.92% and the advances at ₹61,489.41 crore with a YoY growth of 5.36%.
Bank’s loan book quality was steadily improving with the gross NPAs declining to 3.68% as against 4.03% in Q1 of 2022-23 and the net NPAs declining to 1.43% from 2.16%. It acquired 1.72 lakh new customer accounts in the quarter.
The Capital Adequacy Ratio of the bank has further improved to 17% as compared to 15.51% as on June 30, 2022. It further strengthened the balance sheet by increasing Provision Coverage Ratio to 83.47% from 80.86% as on March 31, 2023 and 76.77% as on June 30, 2022.
Bank’s managing director and CEO Srikrishnan Hariharan said, “Karnataka Bank, with our strong fundamentals, is rightly positioned to leverage the franchise strengths and poised for accelerated growth. Having made the right investments in technology, we will re-align our processes and people to deliver in identified business areas.”