Karnataka Bank soars 20 percent after posting records profit


Published On: Wednesday, November 2, 2022 | By:

Karnataka Bank soars 20 percent after posting records profit

Shares of the private sector commercial bank Karnataka Bank skyrocketed 20% to Rs 112.65 apiece on Wednesday as investors reacted to the bank’s highest-ever quarterly profit posted for the July-September period. Karnataka Bank Ltd recorded a net profit of ₹411.63 crores in the second quarter of 2022-23 against ₹125.61 crores in the corresponding quarter of 2021-22, registering a growth of 227.70 percent. The bank’s asset health improved as gross NPA fell to 3.36% from 4.52% in the year-ago period and net NPA reduced to 1.72% versus 2.85% in Q2FY22. CEO Mahabaleshwara MS attributed the significant jump in net profit to improved earnings, improved asset quality, healthy growth of advances, cost containment, and efficiency enhancement, among others.

“The second quarter is a turning point for Karnataka Bank as our net interest income and margin expanded meaningfully and remain poised for future growth. Our all-time high Q2FY23 result represents the tipping point of the Bank’s reinvigorated trajectory," he added. The lender is undergoing a transformation to becoming a highly digitally focused bank that has future-ready operations and can outpace market demands.

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