Karnataka Bank shares plunge 12.6% after Q3 earnings, hit 2-week low
Karnataka Bank shares witnessed a substantial decline of 12.60%, hitting a 2-week low of ₹233.10 apiece in today's trading session. This decline follows the bank falling short of street estimates for the December-ending quarter with a deterioration in its asset quality. The bank's gross non-performing assets (NPA) experienced a YoY increase of 36 basis points, reaching 3.64% in Q3 FY24.
However, the net NPA recorded an 11-basis point decrease, declining to 1.55%. Also Read: Zee Ent share price rallies over 6% after 33% slump in the previous session While the Provision Coverage Ratio (PCR) has been maintained in the same range at 80.75% in December 2023 compared to 80.86% in March 2023, it has shown improvement by 54 basis points on a YoY basis (from 80.21% in December 2022). It reported a net interest income (NII) of ₹827.60 crore, a 0.86% drop compared to the NII of ₹834.76 crore reported during the same period of the previous year, while the net interest margin (NIM) declined to 3.46% from 3.81% in Q3 FY23.
When viewed sequentially, the NIM has decreased, as the bank reported 3.58% in Q2 FY24. The bank recorded pre-provision operating profit (PPoP) at ₹540.20 crore for the December ending quarter, reflecting a 1.57% rise from the same quarter in the previous year when it stood at ₹531.87 crore. Regarding net profit, the bank reported a nearly 10.11% increase to ₹331.08 crore in Q3 FY24.
In the corresponding period of the previous year, the bank had posted a net profit of ₹300.68 crore. Sequentially, the net profit came in flat. Also Read: IPO investors call for rules to keep anchors from selling early The bank posted an all-time high net profit for 9MFY 2023–24 of ₹1,032.04 crore, as against ₹826.49 crore earned during
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