Karnataka Bank Q4 Results: Net profits dips 23% YoY to Rs 274 crore, dividend declared at Rs 5.5 per share
Karnataka Bank's net profit for the March quarter fell 23% at Rs 274 crore against Rs 354 crore owing to lower net interest income and higher staff and other expenses.
The bank's operating profit for the quarter was also 27% lower at Rs 500 crore against Rs 686 crore.
Its net interest margin, a key profitability metric, fell 57 basis points to 3.3% for the quarter as compared with 3.87% seen in the year-ago period. Net interest income was 3% lower at Rs 834 crore.
The bank's gross advances expanded by 19% year-on-year to Rs 73002 crore while deposits rose 12.2% to Rs 98,058 crore.
Its asset quality improved with gross non-performing assets ratio being at 3.53% at the end of March as against 3.74% a year back. In line with this, provisions were lower at Rs 185 crore as compared with Rs 253 crore.
The one-time staff cost of Rs 152 crore relating to enhanced actuarial provisions on account of salary revision under the 12th bipartite wage settlement was one of the reasons for higher expenses and lower profits. Although the bipartite settlement between bank management and bank employee unions are mainly for public sector banks, some old generation private banks like Karnataka Bank follow this.
The bank incurred a total expenditure of Rs 2120 crore in the quarter under review, about 12% higher than what it was in the year ago period. In contrast, total income was 11% higher at Rs 2620 crore.
Its board has recommended a 55% dividend for FY24 which comes to Rs 5.5 per share.
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