Karnataka Bank Q4 Results: Profit down 8% YoY to Rs 252 crore despite lower provisions

Private sector Karnataka Bank reported a 8% fall in fourth quarter net profit at Rs 252 crore against Rs 274 crore in the year ago period, despite lower provisions and contingencies which stood at Rs 31 crore against Rs 185 crore.

The bank's pre-provision operating profit also stood xxx lower at Rs 375 crore as compared with Rs 500 crore. This is largely on account of rise in expenses, which grew faster than rise in income.

Its total income for the quarter stood at Rs 2687 crore, up 2.6% against Rs 2620 crore. In comparison, total expenses during the same period grew 9% at Rs 2312 crore against Rs 2120 crore.

The net interest margin for the quarter stood lower at 2.98% as compared with 3.32% in the year-ago period.

The bank management said that the fall in profitability was due to the change in accounting policy for investments.

"The corresponding previous year figures are not directly comparable due to changes in accounting policy for investments since April 2024," it said, adding that had the bank continued to follow the earlier accounting policy, profit after tax for the quarter under review would have been higher at Rs 372 crore.

The bank's asset quality improved with gross non-performing assets ratio declining to 3.08% at the end of March from 3.53% a year back. Net NPA was at 1.31 % against 1.58%.

Its gross advances rose 6.8% year-on-year to Rs 77,959 crore, with the share of retail loans being at 93.4%. Deposits grew 7% to Rs 1.05 lakh crore.

The bank board recommended a dividend of Rs 5 per equity share for the last financial year.