The bank's profit before tax (PBT) surged 68.5% year on year to Rs 367 crore in the quarter ended 31 December 2021.

The bank's provisions (other than tax) and contingencies was up 19% at Rs 164.87 crore in Q2 FY23 as against Rs 138.50 crore in Q2 FY22.

The asset quality also improved during the period. The GNPA has declined by 8 bps to 3.28% from 3.36% as compared to the sequential previous quarter i.e September 2022. Similarly, the NNPA also declined by 6 bps to 1.66% from 1.72% as compared to the sequential previous quarter i.e. September 2022. The PCR has further improved to 80.21% from 73.66% a year ago.

The bank has clocked a business turnover of Rs 1,47,128.51 crore as on 31 December 2022, with a YoY growth rate of 9.79%, deposits of Rs 84,596.40 crore with YoY growth rate of 7.86% and advances of Rs 62,532.11 crore with YoY growth rate of 12.51%.

CASA deposits increased by 9.95% YoY. CASA proportion at 31.91%, up by 61 bps YoY.

Capital adequacy stood at 15.13%, up by 98 bps YoY. ROE rose by 733 bps YoY to 14.74%. ROA at 1.14%, up 57 bps Y-o-Y.

Mahabaleshwara M S, managing director & CEO of the bank said, "The impressive all round performance of the Bank is on account of improved operational efficiency facilitated by various initiatives under KBL VIKAAS. The NII has gone up by 26.74%. NIM has improved to an all time high of 3.63% as compared to 3.15% as on 31/12/21. Further, the Bank has also shown improvement in GNPA, NNPA indicating better asset quality. Further PCR has also improved to an all time high of 80.21 %. The consistent and stable performance has been the hallmark of the Bank, and going forward Bank will strive hard for its sustainability with higher scale."

Karnataka Bank is an Indian private sector bank based in Mangalore. It had 885 branches, 1463 ATMs and cash recyclers and 567 e-lobbies.