Karnataka Bank Shares Plunge 12.60 Percent After Disappointing Q3 Results

Karnataka Bank Shares Plunge 12.60 Percent After Disappointing Q3 Results

VoM News Desk | January 24, 2024 | 10:10 AM IST | Breaking News | Follow on Google News

Karnataka Bank Shares Plunge 12.60 Percent After Disappointing Q3 Results/Mint

Karnataka Bank Shares Plunge 12.60 Percent After Disappointing Q3 Results

Karnataka Bank shares witnessed a substantial decline of 12.60%, reaching a two-week low of ₹233.10 apiece in the current trading session. This decline follows the bank falling short of street estimates for the December-ending quarter with a deterioration in its asset quality during the quarter.

Deterioration in Asset Quality and Financial Metrics

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%. The Provision Coverage Ratio (PCR) remained stable at 80.75% in December 2023 compared to 80.86% in March 2023, showing improvement by 54 basis points on a YoY basis.

Financial Metrics Overview

The bank reported a net interest income (NII) of ₹827.60 crore, a modest 0.86% compared to the NII of ₹834.76 crore reported during the same period of the previous year. The net interest margin (NIM) declined to 3.46% from 3.81% in Q3 FY23. Pre-provision operating profit (PPoP) for the December ending quarter rose by 1.57% to ₹540.20 crore.

Mixed Net Profit Performance

The net profit of the bank increased by nearly 10.11% to ₹331.08 crore in Q3 FY24. However, when viewed sequentially, the net profit remained flat. The bank posted an all-time high net profit for 9MFY 2023–24 of ₹1,032.04 crores, registering a YoY growth of 25%.

Record Business Turnover and Current Stock Status

The bank reported a record business turnover of ₹1,61,936.36 crore as of December 31, 2023, with YoY growth of 9.22%. At 09:50 am, the stock was trading with a drop of 10.30% at ₹239.20 apiece.

VoM News Desk

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