India's Karnataka Bank shares jump on upbeat quarterly results (updated)

Karnataka Bank

02/11/2022 05:35

(Adds details on results, CEO comment)
       BENGALURU, Nov 2 (Reuters) - Shares of Karnataka Bank
 KBNK.NS  jumped as much as 20% on Wednesday, marking their
biggest percentage gain in over 13 years, after the private
lender more than tripled its quarterly profit.
    Net profit soared over 225% to 4.12 billion Indian rupees
($49.8 million) in the quarter ended Sept. 30, hitting a record
high, the company said in an exchange filing after markets
closed on Tuesday.
    "The significant jump in net profit is mainly because of
improved earnings, improved asset quality, healthy growth of
advances and cost containment," Chief Executive M. S.
Mahabaleshwara said in a statement.
       The bank's fiscal year 2023 first half earnings has
surpassed the profits it posted for the whole of last year, he
added.
  
    Net interest earned in the September quarter rose 14% to
17.71 billion rupees, while interest margin improved to 3.56%
from 3.15% last year. 
        Asset quality was also better, with bad loan ratio
shrinking to 3.36% from 4.03% in the June quarter.
  
        Major Indian banks have reported strong profit growth in
the September quarter as lending improved despite a slew of rate
hikes by the central bank to tame high inflation.
  
        Shares in Karnataka Bank have already gained nearly 53%
so far this year. 
  
    
 ($1 = 82.6850 Indian rupees)
 (Reporting by Praveen Paramasivam in Bengaluru; Editing by
Savio D'Souza and Dhanya Ann Thoppil)
 ((Praveen.Paramasivam@thomsonreuters.com; https://twitter.com/PraveenR_P
 ; +91 867-525-3569;))