Mangaluru, January 31, 2025
Karnataka Bank Ltd. (NSE: KTKBANK, BSE: 532652) has announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024. The financials highlight steady growth in revenue, profitability, and asset quality improvements.Key Financial Highlights
| Particulars | Q3 FY2025 | Q3 FY2024 | YoY Change | 9M FY2025 | 9M FY2024 | YoY Change |
|---|---|---|---|---|---|---|
| Total Income (₹ Cr.) | 2,535.38 | 2,438.69 | +3.96% | 7,596.43 | 6,997.45 | +8.57% |
| Net Interest Income (₹ Cr.) | 2,243.02 | 2,112.61 | +6.18% | 6,755.14 | 6,097.94 | +10.78% |
| Operating Profit (₹ Cr.) | 433.07 | 540.20 | -19.85% | 1,452.02 | 1,663.52 | -12.69% |
| Net Profit (₹ Cr.) | 283.60 | 331.08 | -14.32% | 1,020.00 | 1,032.04 | -1.17% |
| EPS (₹) | 7.51 | 9.79 | -23.28% | 27.01 | 32.14 | -15.96% |
| Capital Adequacy Ratio (Basel III) (%) | 17.64 | 15.88 | +176 bps | 17.64 | 15.88 | +176 bps |
| Gross NPA (%) | 3.11 | 3.64 | -53 bps | 3.11 | 3.64 | -53 bps |
| Net NPA (%) | 1.39 | 1.55 | -16 bps | 1.39 | 1.55 | -16 bps |
| Provision Coverage Ratio (%) | 80.64 | 80.75 | -11 bps | 80.64 | 80.75 | -11 bps |
Segment-Wise Performance
- Corporate Banking: Revenue stood at ₹892.10 crore, slightly down from ₹910.49 crore in Q3 FY2024.
- Retail Banking: Strong growth with ₹1,155.80 crore in revenue, a YoY increase of 11.57%.
- Treasury Operations: Revenue stood at ₹401.02 crore, compared to ₹432.48 crore in Q3 FY2024.
- Other Banking Operations: Revenue at ₹69.66 crore, reflecting a YoY increase of 44.92%.
Key Metrics & Financial Ratios
- Return on Assets (RoA): 0.92% (down from 1.18% in Q3 FY2024).
- Net Interest Margin (NIM): 3.02% (down from 3.26% YoY).
- Debt-Equity Ratio: Stable at 0.09x.
- Net Worth: Increased to ₹11,320.89 crore, reflecting the bank’s strong capital base.
Management Commentary
Srikrishnan H, Managing Director & CEO, stated:"Despite a challenging economic environment, Karnataka Bank has maintained its financial stability with robust asset quality and strong capital adequacy. Our digital transformation initiatives and retail banking growth have been key drivers. Going forward, we aim to strengthen our retail and SME portfolio while maintaining prudent risk management."
Corporate Announcements
- Capital Raising: The bank allotted 2,42,036 equity shares under the Employee Stock Options Scheme (ESOP) during Q3 FY2025.
- Investment Valuation Changes: As per RBI’s new Master Direction (effective April 1, 2024), Karnataka Bank has reclassified its investment portfolio, impacting reported profits by ₹100.64 crore for the nine-month period.
- Security Cover for Debentures: The bank maintains a Tier-2 Subordinated Unsecured Non-Convertible Bonds portfolio of ₹300 crore, with no additional security required.
Strategic Outlook
- Digital Banking Expansion: With two Digital Banking Units (DBUs) in operation, Karnataka Bank is enhancing its fintech integration.
- Loan Portfolio Growth: A focus on secured retail lending and corporate credit expansion.
- Improved Asset Quality: Continued focus on reducing NPAs while maintaining high provision coverage ratios.