The net interest income also increased for the quarter by 26 % to Rs 802.73 crore from Rs 637.10 crore reported during the same period last year.
For the September quarter, the NPAs also moderated as the gross NPAs reduced to 3.36 % against 4.03% as of the previous quarter, while net NPAs also reduced to 1.72 % against 2.16% as of the previous quarter. In the second quarter of last year, the bank had a gross NPA of 4.52 %, and net NPA was of 2.85 %.
For the half year ended September, the net profit stood at Rs 525.5 crore, which is also an all-time high, the bank said in a press release. The business turnover of the Bank has touched a new high of Rs 1,41,505.87 crore as of September 30.
The net interest margin has improved to 3.56 % from 3.15%, during the same quarter last year. Bank’s MD & CEO Mahabaleshwara MS said, “Our all-time high result represents the tipping point of the Bank’s reinvigorated trajectory. Our disciplined execution and aggressive digitalisation, combined with our commitment to superior customer experience, is fortifying Karnataka Bank’s reputation for delivering sustained profitable growth. The milestone of reaching Rs 411.47 crore of net profit earned during the quarter is the highest-ever quarterly profit earned by the bank…In just six months of the current year, we have already surpassed last year’s total annual net profit of Rs 507.99 crores. “
The significant jump in net profit, he said, is mainly because of improved earnings, improved asset quality, healthy growth of advances, cost containment, and efficiency enhancement, among others. It is also noteworthy that our core fundamentals across all key performance parameters. “I am sure that as we cross our 100th year next year, the Bank will continue to create new benchmarks of performance with its ever-growing customer base, user-friendly digital products and committed employees,” the MD said.