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Shares of Karnataka Bank today jumped as much as 20%, marking their biggest percentage gain in over 13 years, after the private lender reported a more-than-three-fold jump in quarterly profit. Net profit soared to ₹412 crore, its all-time high, in the quarter ended September 30, from ₹126 crore a year earlier. The lender had reported earnings after markets closed on Tuesday.
At10:35 am, Karnataka Bank shares were locked in 20% upper circuit and traded at ₹112.55. For the quarter ending September 2022, the private lender’s net interest income also increased by 26% to ₹802.73 crore from ₹637.10 crore.
The NPAs also moderated. as the gross non-performing asset(GNPA) went down to 3.36% against 4.03% in the June quarter while NNPAs or gross non-performing assets also reduced to 1.72 % against 2.16% as of 30th June, 2022.
A year ago, the GNPA and NNPA levels were at 4.52%, and NNPA was at 2.85% respectively.
CEO Mahabaleshwara MS attributed the significant jump in net profit to improved earnings, improved asset quality, healthy growth of advances, cost containment, and efficiency enhancement, among others.
“The second quarter is a turning point for Karnataka Bank as our net interest income and margin expanded meaningfully and remain poised for future growth. Our all-time high Q2FY23 result represents the tipping point of the Bank’s reinvigorated trajectory,” he added. The lender is undergoing a transformation to becoming a highly digitally focused bank that has future-ready operations and can outpace market demands.
Incorporated in 1924, Karnataka Bank Limited has over 8,000 employees and a pan-India presence.
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(This story has not been checked by Kashmir Bulletin and is auto-generated from other sources)
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