Karnataka Bank shares tank 12% on lower YoY NIMs, higher GNPA
Karnataka Bank tanked over 12% to the day's low of Rs 233.10 on Wednesday after the private lender reported a marginal decline in its net interest income (NII) and net interest margins (NIMs) for the December ended quarter. The gross non-performing assets (GNPA) also increased on a year-on-year (YoY) basis.
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The price action was supported by strong volume action as over 57.80 lakh shares were trading on the NSE around 11 am.
Karnataka Bank reported the December quarter NII at Rs 827.60 crore down by 0.86% from Rs 834.76 crore reported in the year-ago period. Meanwhile, the NIMs were lower by 35 bps at 3.46% for the October-December quarter versus 3.81% reported in Q3FY23.
The asset quality also improved during the period. The GNPA declined by 10 bps to 3.64% from 3.74% as compared to March 2023, however on YoY basis GNPA increased by 36 bps from 3.28%. Similarly, the NNPA also declined by 15 bps to 1.55% from 1.70% as compared to March 2023, and on YoY basis NNPA declined by 11 bps from 1.66%.
The net profit stood at Rs 331.08 crore in Q3FY24 versus Rs 300.68 crore in Q3FY23, gaining by 10.11% YoY. For the nine-month ended period the profit after tax stood at Rs 1,032.04 crore, up 24.87% YoY from Rs 826.4 crore in FY23.
This is Karnataka Bank's all-time high net profit for 9MFY 2023-24, the company filing said.
Bank clocked a record business turnover of Rs 161,936.36 crore as of December 31, 2023, reporting a YoY growth rate of 9.22% (YTD growth of 11.84%), with advances of Rs 69,740.97 crores. This was a YoY growth of 9.53% (YTD growth of 18.32%). Meanwhile, the deposits stood at Rs 92,195.39 crores registering YoY growth of 8.98% (YTD growth of
