Karnataka Bank Q4 Profit Down 23% to Rs 274 Cr

New Delhi, May 24 (PTI) Karnataka Bank on Friday posted a 23 per cent decline in net profit to Rs 274 crore for the fourth quarter ended March 2024 due to a one-time staff cost increase.

The private sector bank had earned a net profit of Rs 354 crore in the same quarter a year ago.

The total income increased to Rs 2,620 crore during the quarter under review against Rs 2,365 crore in the same period last year, Karnataka Bank said in a regulatory filing.

However, net interest income declined to Rs 834 crore during the period under review from Rs 860 crore in the corresponding quarter a year ago.

The bank incurred a one-time staff cost of Rs 152 crore in the fourth quarter relating to enhanced actuarial provisions arising out of wage settlement, it said.

On the asset quality side, the bank's gross non-performing assets (NPAs) moderated to 3.53 per cent of gross advances as of March 31, 2024, from 3.74 per cent at the end of March 2023.

Net NPAs also declined to 1.58 per cent of the advances from 1.70 per cent at the end of 2023.

As a result, provision and contingencies declined to Rs 185 crore compared to Rs 253 crore earmarked during the same quarter a year ago.

Capital Adequacy Ratio (CRAR) improved to 18 per cent over 17.45 per cent on March 31, 2023.