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Karnataka Bank Q4 results: PAT jumps 171%, dividend declared; appoints new MD and CEO

Karnataka Bank posted a healthy fourth quarter for FY23, despite sharp spike in provisions. Sequentially, the lender's gross NPA picked up. The bank has declared a dividend for the said fiscal.

Karnataka Bank appointed veteran banker Srikrishnan Harihara Sarma as the new Managing Director & CEO.  (Ramesh Pathania/Mint )Premium
Karnataka Bank appointed veteran banker Srikrishnan Harihara Sarma as the new Managing Director & CEO. (Ramesh Pathania/Mint )

Mangalore-based private sector lender, Karnataka Bank's net profit more than doubled to 353.75 crore in the fourth quarter of FY23 on a year-on-year basis. This is despite a sharp increase in provisions, and also gross NPA jumped sequentially.

The lender recorded a growth of 171.38% in Q4FY23 PAT compared to a profit of 130.35 crore in Q4FY22. Sequentially, the growth stood at 17.65%.

Net interest income (NII), which is the difference between interest earned and expended, came in at 860.05 crore in Q4FY23 -- registering a growth of 27.15% from NII of 656.49 crore in Q4FY22. However, the latest NII saw a single-digit growth of 3.03% from 834.76 crore in Q3FY23.

In the quarter under review, provisions and contingencies stood at 253.26 crore, rising by 164.06% from 95.91 crore in Q4FY22 and also up by 53.61% from provisions of 164.87 crore witnessed in the December 2022 quarter.

Read here: Forex reserves decline by $6.05 billion after three-consecutive weekly rises, now at $593.48 billion

In terms of asset quality, gross NPA stood at 3.74% in Q4FY23, which is lower from 3.90% in Q4FY22 but higher from 3.28% in Q3FY23. Similarly, net NPA stood at 1.70% in Q4FY23 versus 2.42% in Q4FY22 and 1.66% in Q3FY23.

In a meeting held on Friday, the bank's board members recommended a dividend of 5 per share (50%) out of the net profits for the year ended March 31, 2023 subject to the approval of the shareholders at the annual general meeting. The record and payment date for the dividend will be announced in due course.

Also, Karnataka Bank appointed veteran banker Srikrishnan Harihara Sarma as the new Managing Director & CEO. The lender believes that Srikrishnan's expertise and leadership will drive the bank toward continued growth and success.

Read here: Samvardhana Motherson Q4 results: PAT skyrockets by 438% to 654 crore, dividend declared; key highlights here

Srikrishnan said, "I am proud to join Karnataka Bank as Managing Director & CEO. With over a century of trust and goodwill built by the Bank, I look forward to working with all the stakeholders to further build and grow on that strong foundation."

The new MD and CEO of Karnataka Bank has previously held key positions at HDFC Bank, Yes Bank, and Jio Payments Bank. He brings with him nearly four decades of experience in Commercial, Retail & Transactional Banking, Teclu1ology, and Payments.

On BSE, the bank's share price closed at 143.90 apiece up by 4.5%.

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Updated: 26 May 2023, 09:37 PM IST
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