Karnataka

Karnataka Bank posts all-time high profit of ₹507.99 crore

Karnataka  Bank Managing Director and CEO M.S. Mahabaleshwara said, “The results (of the bank) are the testimony for the hard work done under the transformation journey.” File

Karnataka Bank Managing Director and CEO M.S. Mahabaleshwara said, “The results (of the bank) are the testimony for the hard work done under the transformation journey.” File | Photo Credit: Special Arrangement

Karnataka Bank has posted an all-time high annual consolidated net profit of ₹507.99 crore for 2021-22 as against the last year’s ₹482.46 crore. 

The net profit for the fourth quarter ending March 2022 was ₹130.20 crore as against the net profit of ₹31.36 crore for the corresponding fourth quarter of F.Y 2020-21, registering more than four times increase in the net profit, said a release from the bank.

In the meeting of the Board of Directors held on Friday here, the board approved the audited annual financial results for the period ending March 31, 2022 and recommended a dividend of 40% to be approved in the ensuing annual general meeting.

The business turnover of the bank was at₹1,37,169.88 crore as on March 31, 2022 compared to ₹1,27,348.19 crore as on March 31, 2021 registering a YoY growth of 7.71%. The deposits of the bank stood at ₹80,386.74 crore with a YoY growth of 6.25% and advances at ₹56,783.14 crore with a YoY growth of 10.22%. The CASA deposits grew by 11.23% and reached an all-time high of 32.97% of total deposits as on March 31, 2022, as against 31.49% as on March 31, 2021.

PCR (Provision Coverage Ratio) improved to 73.47% from 69.99% as in March 2021. The CRAR (Capital to Risk Weighted Assets Ratio) of the bank under Basel III has reached a new high of 15.66 % as against 14.85 % as on March 31, 2021.

The non-performing assets [NPA] have also moderated. The GNPAs (gross non-performing assets) of the bank stood at ₹2,250.82 crore constituting 3.90 % as on March 31, 2022 as against ₹2,588.41 crore constituting 4.91% as on March 31, 2021. Similarly, the NNPAs (net NPAs) also moderated to ₹1,376.97 crore constituting 2.42% from ₹1,645.05 crore as on March 31, 2021 constituting 3.19%. 

The priority sector advances of the bank stood at 56.41% of the total advances as against the minimum stipulated target of 40% by RBI. 

Bank managing director and CEO M.S. Mahabaleshwara said, “The results are the testimony for the hard work done under the transformation journey. It is very satisfying to note the all-time high net profit of ₹507.99 crore, CRAR of 15.66% and PCR of 73.47%. Similarly, CASA has also reached a new high of 32.97%, resulting in further reduction in cost of lending resources.”


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Printable version | Jun 19, 2022 8:42:08 pm | https://www.thehindu.com/news/national/karnataka/karnataka-bank-posts-all-time-high-profit-of-50799-crore/article65469590.ece