Media Release
Mangaluru, Jan 31: Karnataka Bank recorded significant progress in the 9M FY’25 financials with an all-time high Aggregate Business at Rs 1,77,978.27 cr. Notable improvements were reflected in growth in Gross Advances and better quality with reduction in gross & net NPAs as well. For Q3FY 2024-25, the bank posted a net profit of Rs 283.60 cr as against Rs 331.08 cr during the corresponding period previous year. The bank posted a net profit for 9MFY 2024-25 of Rs 1,020 cr, as against Rs 1,032.04 cr earned during the corresponding period previous year, a marginal decline (Y-o-Y) of 1.17%. The decline is primarily due to the change in accounting of investment income basis the RBI master directions. Had the bank continued to follow the earlier accounting policy, ‘Profit before Tax’ would have been higher by Rs 100.64 cr for 9M FY25.
In the meeting of the board of directors held on January 31 at Mangaluru, the board approved the financial results for the quarter and nine months period ended December 31, 2024.
Bank’s gross advances stood at Rs 77,859.75 cr registering YoY growth of 11.64% (YTD growth of 6.65%) and aggregate deposits stood at Rs 1,00,118.52 cr registering YoY growth of 8.59% (YTD growth of 2.10%).
The asset quality has improved well during the period with GNPA declined by 42 bps to 3.11% from 3.53% as compared to March 2024. Similarly, the NNPA also declined by 19 bps to 1.39% from 1.58% as compared to March 2024, and on YoY basis NNPA declined by 16 bps from 1.55%. The PCR is maintained in the same range at 80.64% in December 2024 (from 80.75% in December 2023).
Announcing the results at the bank’s headquarters at Mangaluru, Srikrishnan H, managing director & CEO of the bank said, “Karnataka Bank is beginning to accrue the benefits from various transformative steps initiated with growth in the retail & mid-corporate segments and an improved quality of the book. With increased traction from our branch, sales & digital channels, we are confident of sustained and definitive growth outcomes with going forward.”
Sekhar Rao, executive director of the bank, said, “Despite the challenging macroeconomic environment, Karnataka Bank has remained focused on maintaining the quality of our book while ensuring that we are on the right track for sustained growth. Our commitment to digital transformation and technology-driven solutions has strengthened operational efficiency, enabling us to better manage risk and enhance customer experience. We are confident that these strategic initiatives will help us drive sustainable growth moving forward"
