Karnataka Bank shares tumbled 13% today. Here's why

Karnataka Bank Ltd shares fell 13 per cent in Wednesday's trade following the lender's December quarter results. The bank posted a flattish net interest income (NII) at Rs 827.60 crore for the quarter while its net interest margin (NIM) fell 35 basis points to 3.46 per cent from 3.81 per cent YoY. 

Besides, gross non-performing assets came in at 3.64 per cent as percentage of advances, up 36 bps from 3.28 per cent in the year-ago quarter. Karnataka Bank's net profit was up 10.11 per cent YoY at Rs 331.08 crore for the quarter from Rs 300.68 crore YoY. 

Following the results, Karnataka Bank shares fell 12.53 per cent to hit a low of Rs 233.10 on BSE. Karnataka Bank clocked a business turnover of Rs 1,61,936.36 crore as on December 31, up 9.22 per cent YoY. Advances stood at Rs 69,740.97 crore, registering YoY growth of 9.53 per cent. Deposits stood at Rs 92,195.39 crore, registering a growth of 8.98 per cent.

Managing Director & CEO Srikrishnan H said his bank was consciously working towards a cultural shift to be more relevant and launched several new products, improved our technology platforms and internal processes. 

"In the last quarter, we expanded our offerings and acquisition strategy internally and through NBFCs/Fintech collaborations as well," Srikrishnan said.

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