Share prices of this company engaged in providing a wide range of banking and financial services dropped by 12.6 percent on Wednesday to Rs. 233.1, after the company announced its financial results for Q3 FY23-24, that is, for the quarter ended December 2023.
With a market cap of Rs. 8,476 crore, shares of Karnataka Bank Ltd. opened at Rs. 254 on January 24 from its previous close of Rs. 266.7. The company has delivered nearly 18.01 percent returns in the last six months, whereas it has given more than 67.6 percent in the last one year. So far, it has given returns of around 2.9 percent in 2024.
The fluctuations in the share prices were observed after the company announced its financial results (standalone and consolidated) on January 23, for the third quarter and nine months ended 31st December 2023, through a recent filing with the stock exchanges.
The bank reported an all-time high net profit of Rs. 1,032.04 crores in 9MFY23-24 compared to Rs. 826.49 crore earned in 9MFY22-23, registering a year-on-year growth of 25 percent. Similarly, for Q3FY23-24, it posted a net profit of Rs. 331.08 crore with a YoY growth rate of 10.11 percent as against Rs. 300.68 in Q3FY22-23.
As on 31 December 2023, the bank registered a record business turnover of Rs. 1,61,936.36 crore with a YoY growth rate of 9.22 percent, with advances of Rs. 69,740.97 crore registering YoY growth of 9.53 percent and increase in deposits by 8.98 percent on a YoY basis of Rs. 92,195.39 crores.
The net interest margin (NIM) fell 35 basis points to 3.46 percent in Q3 FY23-24 from 3.81 percent in Q2 FY22-23, whereas the net interest income declined by 0.86 percent from Rs. 834.76 crore in Q3 FY22-23 to Rs. 827.6 crore in Q3 FY23-24.
The gross non-performing asset (NPA) has declined by 10 bps to 3.64 percent compared to March 2023, but on YoY basis gross NPA increased by 36 bps from 3.28 percent. The net NPA also fell by 15 bps to 1.55 percent from 1.7 percent as compared to March 2023, whereas the net NPA declined by 11 bps from 1.66 percent on a YoY basis.
As of December 2023, FIIs hold 19.03 percent of the shares, whereas DIIs hold 17.69 percent of the shares in the company, aggregating to 36.72 percent of the institutional holdings. The Public holdings have decreased from 68.71 percent in the September 2023 quarter to 63.26 percent in the December 2023 quarter.
In September 2023, the Board of Directors had approved to raise equity capital for up to an amount of Rs. 1,500 crore. In addition, another board meeting is to be held on 27 January to consider further capital raise of the amount remaining unutilised out of the overall limit of Rs. 1,500 crore.
Incorporated in 1924, Karnataka Bank Limited is a leading financial service institution and has experience at the forefront of providing professional banking services and quality customer service and now has a national presence with a network of 905 branches spreading across 22 states and 2 union territories.
Written by Shivani Singh
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