Karnataka Bank ‘s gross non-performing assets increased by 36 basis points to 3.64 percent in the second quarter, up from 3.28 percent the previous year.
Karnataka Bank Ltd shares slumped 13% in Wednesday trading following the lender’s December quarter results. The bank reported a flat net interest income (NII) of Rs 827.60 crore for the quarter, while its net interest margin (NIM) decreased 35 basis points to 3.46 percent from 3.81 percent year on year. Furthermore, gross non-performing assets increased by 36 basis points to 3.64 percent of advances, up from 3.28 percent the previous year. Karnataka Bank’s net profit increased by 10.11 percent year on year to Rs 331.08 crore during the quarter, up from Rs 300.68 crore last year.
Karnataka Bank shares dropped 12.53 percent in response to the news, reaching a low of Rs 233.10 on the BSE. As of December 31, Karnataka Bank recorded a commercial turnover of Rs 1,61,936.36 crore, an increase of 9.22% YoY. With advances of Rs 69,740.97 crore, there was a 9.53% YoY increase. With deposits at Rs 92,195.39 crore, there was an 8.98% increase.
The bank is actively trying to change its culture, according to Managing Director and CEO Srikrishnan H, to be more relevant. The bank has also introduced several new products and enhanced its internal procedures and technological platforms. In the last quarter, we expanded our offerings and acquisition strategy internally and through NBFCs/Fintech collaborations as well, said Srikrishnan.
