|
Karnataka Bank has reported -20%
dip in net profit at Rs 330.26 crore for the quarter ended September 2023
(Q2FY2024). The bank has posted moderate 2% growth in net interest income
(NII). The Net Interest Margin (NIM) of the bank declined to 3.58% in Q2FY2024
compared to 3.78% in the corresponding quarter of previous year.
On business front, the bank as has posted 10%
growth in business with 9% rise in loan book. The asset quality of the bank was
stable in Q2FY2024. Bank has maintained steady credit to deposit ratio at 73.1%
at end September 2023 from 73.3% at end September 2022. CASA ratio of the bank
has declined to 31.9% at end September 2023 from 32.8% at end September 2022.
Asset quality stable : The bank has maintained stable asset quality in
Q2FY2024.
The standard restructured loan book of the bank
stood at Rs 1851 crore end September 2023 compared to Rs 2268 crore a quarter
ago.
Provision coverage ratio was steady at 83.22% at
end September 2023 compared to 83.47% a quarter ago and 79.97% a year ago.
The capital adequacy ratio of the bank stood at
16.2% with Tier I ratio at 13.1% at end September 2023.
|
Asset Quality
Indicators: KarnatakaBank
|
|
|
Sep/23
|
Jun/23
|
Mar/23
|
Dec/22
|
Sep/22
|
Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
2324.19
|
2315.88
|
2292.91
|
2085.73
|
2051.70
|
0
|
1
|
13
|
|
Net NPA (Rs Crore)
|
888.94
|
877.71
|
1021.27
|
1040.88
|
1028.47
|
1
|
-13
|
-14
|
|
% Gross NPA
|
3.47
|
3.68
|
3.74
|
3.28
|
3.36
|
-21
|
-27
|
11
|
|
% Net NPA
|
1.36
|
1.43
|
1.70
|
1.66
|
1.72
|
-7
|
-34
|
-36
|
|
% PCR
|
83.22
|
83.47
|
80.86
|
80.21
|
79.97
|
-25
|
236
|
325
|
|
% CRAR - Basel III
|
16.20
|
17.00
|
17.45
|
15.13
|
15.28
|
-80
|
-125
|
92
|
|
% CRAR - Tier I -
Basel III
|
13.11
|
13.80
|
14.18
|
12.20
|
12.34
|
-69
|
-107
|
77
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Moderate business growth: The business of the bank has increased 10% YoY
to Rs 154954 crore end September 2023, driven by 9% rise in advances to Rs
65422 crore. Deposits rose 10% to Rs 89532 crore at end September 2023.
CASA deposits ratio declines: The CASA deposits of the bank rose 7% YoY to Rs
28570 crore at end September 2023. The CASA ratio declined to 31.9% at end
September 2023 compared to 32.8% at end September 2022, while declined from
32.2% a quarter ago. The term deposits have increased 11% to Rs 60962 crore end
September 2023.
Moderate loan growth: Advances growth was driven by retail loans
rising 8% YoY to Rs 31991 crore at end September 2023, while credit to MSME f2%
to Rs 17206 crore at end September 2023. The corporate credit has jumped 28% to
Rs 16225 crore end September 2023.
Investment
book of the bank rose 1% YoY
to Rs 23958 crore at end September 2023.
Margins improve: The bank has showed 73 bps YoY jump in cost of
deposits to 5.20%, while yield on advances increased 85 bps YoY to 10.00% in
Q2FY2024. NIM has eased -20 bps YoY to 3.58%.
Branch expansion: The bank has network of 903 branches and 1480
ATM`s end September 2023.
Book value of the bank stood at Rs 263.7 per share at end September 2023,
while the adjusted book value (net of NNPA and 10% of restructured advances)
was Rs 229.4 per share at end September 2023.
Quarterly Performance
Moderate growth in NII: Bank has recorded 14% increase in the interest
earned at Rs 2026.59 crore, while interest expenses surged 24% to Rs 1204.18
crore in Q2FY2024. NII improved 2% to Rs 822.41 crore in the quarter ended
September 2023.
Non-interest income declines: Bank has posted 4% dip in the overall
non-interest income to Rs 249.59 crore in the quarter ended September 2023.
Expenses ratio jumps: The operating expenses of the bank increased 13%
to Rs 549.85 crore, as other expenses moved up 9% to Rs 242.7 crore, while
employee expenses increased 17% to Rs 307.15 crore in Q2FY2024. Cost to income
ratio increased to 51.3% in Q2FY2024 compared with 45.6% in Q2FY2023, causing
10% decline in the Operating Profit to Rs 522.15 crore.
Provisions and contingencies jumps: The bank has jump in provisions to Rs 119.87
crore compared with write back of Rs 13.65 crore in Q2FY2024.
Effective tax rate declined to 17.9% in Q2FY2024 from 30.4% in Q2FY2023. Net
Profit declined 20% YoY to Rs 330.26 crore during quarter ended September 2023.
Financial Performance H1FY2024:
Bank has posted 33% increase in net profit to Rs
700.96 crore in the half year ended September 2023 (H1FY2024). The net interest
income increased 10% to Rs 1637.09 crore, while non-interest income moved up
46% to Rs 573.43 crore, pushing up net total income by 17% to Rs 2210.52 crore
in H1FY2024. The operating expenses increased 22% to Rs 1087.20 crore, while
provision and contingencies declined 22% to Rs 271.44 crore, allowing profit
before tax to increase 33% to Rs 851.88 crore in H1FY2024. The cost-to-income
ratio rose to 49.2% in H1FY2024 compared to 47.4% in H1FY2023. An effective tax
rate declined to 17.7% in H1FY2024 compared to 18.0% in H1FY2023. The net
profit has increased 33% to Rs 700.96 crore in H1FY2024.
|
KarnatakaBank: Results
|
|
Particulars
|
2309 (3)
|
2209 (3)
|
Var %
|
2309 (6)
|
2209 (6)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
|
Interest Earned
|
2026.59
|
1771.05
|
14
|
3985.33
|
3400.13
|
17
|
7220.23
|
6221.66
|
16
|
|
Interest Expended
|
1204.18
|
968.32
|
24
|
2348.24
|
1909.84
|
23
|
4035.13
|
3730.63
|
8
|
|
Net Interest Income
|
822.41
|
802.73
|
2
|
1637.09
|
1490.29
|
10
|
3185.10
|
2491.03
|
28
|
|
Other Income
|
249.59
|
260.04
|
-4
|
573.43
|
392.83
|
46
|
992.58
|
953.88
|
4
|
|
Net Total Income
|
1072.00
|
1062.77
|
1
|
2210.52
|
1883.12
|
17
|
4177.68
|
3444.91
|
21
|
|
Operating Expenses
|
549.85
|
484.95
|
13
|
1087.20
|
892.52
|
22
|
1969.45
|
1810.91
|
9
|
|
Operating Profits
|
522.15
|
577.82
|
-10
|
1123.32
|
990.60
|
13
|
2208.23
|
1634.00
|
35
|
|
Provisions &
Contingencies
|
119.87
|
-13.84
|
PL
|
271.44
|
349.06
|
-22
|
767.19
|
939.44
|
-18
|
|
Profit Before Tax
|
402.28
|
591.66
|
-32
|
851.88
|
641.54
|
33
|
1441.04
|
694.56
|
107
|
|
Provision for tax
|
72.02
|
180.03
|
-60
|
150.92
|
115.73
|
30
|
260.80
|
185.94
|
40
|
|
PAT
|
330.26
|
411.63
|
-20
|
700.96
|
525.81
|
33
|
1180.24
|
508.62
|
132
|
|
EPS*(Rs)
|
38.2
|
47.6
|
|
40.5
|
30.4
|
|
34.1
|
14.7
|
|
|
Adj BV (Rs)
|
230.4
|
185.7
|
|
230.4
|
185.7
|
|
206.5
|
155.8
|
|
|
* Annualized on current equity of
Rs 346.26 crore post preferential allotment of equity in October 2023 . Face Value: Rs 10, Figures in Rs crore
PL: Profit to loss, LP: Loss to
Profit
|
|
Source: Capitaline Corporate
Database
|
|