Yahoo Finance

• Branches and ATMs: Opened 31 new branches and 39 e-lobbies, totaling 952 branches and 1,228 ATMs and e-lobbies.

• Business Turnover: Reached INR 182,766 crore, up 7% year-on-year.

• Profit After Tax (PAT): INR 1,272.37 crore for FY25, compared to INR 1,306.28 crore in FY24.

• Gross Advances: INR 77,958.72 crore, a year-on-year growth of 6.8%.

• Aggregate Deposits: INR 105,000 crore, reflecting a year-on-year growth of 6.96%.

• CASA Ratio: 31.75%, compared to 31.94% in March '24.

• Net Interest Income (NII): INR 3,310.38 crore for FY25, compared to INR 3,298.72 crore in FY24.

• Net Interest Margin (NIM): 3.19% for FY25, compared to 3.52% in FY24.

• Gross NPA: 3.08% as of March '25, down from 3.53% in the previous year.

• Net NPA: 1.31% as of March '25, improving from 1.58% in the previous year.

• Provision Coverage Ratio (PCR): 81.42% including technical write-offs.

• Liquidity Coverage Ratio (LCR): 162.5%, up from 152% in the previous quarter.

• Cost of Funds: 5.67%, compared to 5.42% in FY24.

• Credit Cost: 0.37% for FY25, down from 0.84% in the previous year.

• Cost to Income Ratio: 60.11%, adjusted to 58.3% excluding one-time provisions.

• Return on Equity (ROE): 11.1%, compared to 13.7% in the previous year.

• Return on Assets (ROA): 1.05%, compared to 1.19% in FY24.

• Capital Adequacy Ratio (CAR): 19.85%, with Tier 1 at 18.35%.

• Warning! GuruFocus has detected 2 Warning Sign with BOM:532652.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Karnataka Bank Ltd (BOM:532652) opened 31 new branches and 39 e-lobbies, expanding its network to 952 branches and 1,228 ATMs and e-lobbies.

• The bank has strengthened its digital channel with a Digital Center of Excellence and a data-driven analytics acquisition engine, enhancing lead generation and customer engagement.

• Significant improvement in asset quality with gross NPAs reduced to 3.08% and net NPAs to 1.31%, reflecting effective management of non-performing assets.

• The bank launched 15 new products in the last financial year, targeting various segments including retail, MSME, and liabilities, to plug gaps in its product offerings.

• Karnataka Bank Ltd (BOM:532652) achieved a record high business turnover of INR182,766 crore, marking a 7% year-on-year increase.

Negative Points

• The bank's profit after tax for FY25 decreased to INR1,272.37 crore from INR1,306.28 crore in FY24, impacted by changes in accounting policies and one-time provisions.

• Net interest income remained flat due to rising cost of deposits and regulatory changes affecting penal charges and investment portfolio accounting.

• The cost-to-income ratio increased to 60.11%, with a temporary rise attributed to investments in infrastructure and employee-related provisions.

• The bank's return on equity (ROE) and return on assets (ROA) decreased to 11.1% and 1.05% respectively, compared to the previous year.

• Despite efforts to grow the retail and MSME segments, the overall asset growth was constrained, with a focus on replacing low-yielding assets impacting total book growth.