Karnataka Bank Declared 55% Dividend Despite Net Profit Decline In Q4

Karnataka Bank Declared 55% Dividend Despite Net Profit Decline In Q4

Karnataka Bank Ltd saw a 22.48 percent decrease in net profit in the fourth quarter of 2023–24, with Rs 274.24 crore recorded compared to Rs 353.75 crore in the same period of the previous fiscal year.

Vikrant DurgaleUpdated: Monday, May 27, 2024, 10:10 AM IST
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Image: Karnataka bank (Representative)

Karnataka Bank Ltd saw a 22.48 percent decrease in net profit in the fourth quarter of 2023–24, with Rs 274.24 crore recorded compared to Rs 353.75 crore in the same period of the previous fiscal year.

NPA (Non Performing Assets)

The percentage of gross non-performing assets (NPA) increased to 3.53 per cent in March 2024 from 3.7 per cent in March 2023, while the percentage of net NPA (NNPA) decreased to 1.58 percent in March 2024 from 1.70 percent in March 2023.

The bank saw a 10.68 per cent increase in net profit to Rs 1306.28 crore in 2023–24 from Rs 1180.24 crore in 2022–23. At its meeting, the bank's board of directors approved the audited annual financial results for 2023–2024 and recommended a 55 per cent dividend for approval at the upcoming annual general meeting.

NII Net Interest Income

Net interest income, which is the difference between saving interest paid to customers and interest earned from loans In the fourth quarter of 2023–24, the bank's net interest income was Rs 834.03 crore, compared to Rs 860.05 crore during the same period in 2022–23.

The bank's other income climbed from Rs 395.24 crore in Q4 FY23 to Rs 419.42 crore in Q4 FY24. In the fourth quarter of 2023–24, the bank's net interest margin was 3.30 per cent, compared to 3.87 percent during the same period in the previous fiscal year.

The restructured portfolio and overall gross non-performing assets (NPA) have significantly improved, decresing from 11per cent of gross advances in FY22 to 7.9 per cent in FY23 and 5.7 per cent in FY24.

Management On Financials

"Karnataka Bank's financial achievements are a testament to its dedicated and ongoing transformational changes," Srikrishnan H., MD and CEO. We are paving the way for a new direction by working together to improve technology-based deliveries combined with operational effectiveness.

We have strengthened our management team, redesigned our technology architecture, launched a number of new products, and improved our internal processes to make them more outward-focused and customer-focused as a result of a cultural shift towards relevance, Srikishanan added.

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