Media Release
Mangaluru, Jul 24: In the meeting of the Board of Directors held today at Bank’s headquarters Mangaluru, the Board has approved the financial results for the quarter ended June 30.
Karnataka Bank has posted a record net profit of Rs. 400.33 crore for Q1 of FY25 as against Rs. 370.70 crore during the corresponding Q1 of FY 24 with an YoY (Year-on -Year) growth rate of 7.99%.
The Bank achieved its highest business turnover at Rs. 1,75,619 crore for Q1 of FY25 compared to Rs. 1,49,971 crore for Q1 of FY 24 registering a YoY growth of 17.10%. The aggregate deposits of the bank stood at Rs. 1,00,164 crore for Q1 of FY 25 as against Rs. 86,960 crore for Q1 of FY 24 with a YoY growth of 15.18%. Bank’s gross advances stood at Rs. 75,455 crore as against Rs. 63,012 crore as of Q1 of FY24 with a YoY growth of 19.75%.
The operating profit of the Bank stood at Rs. 558.59 crore and net interest income stood at Rs. 903.36 crore as at the quarter ended on June 30.
The book quality is steadily improving with gross NPAs declined to 3.54% at end of Q1 of FY25 compared to 3.68% in the corresponding Q1 of FY24. Net NPAs [NNPAs] stood at 1.66 % in Q1 of FY25 from 1.43% in the corresponding Q1 of FY24.
The capital adequacy ratio of the Bank has further improved to 17.64% at end of Q1 of FY25 as compared to 17% at end of Q1 of FY24.
Announcing the results at the Bank’s headquarters at Mangaluru, Srikrishnan H, managing director & CEO of the Bank said “We are happy to report multiple milestones in financial performance crossing Rs 1.75 lac crore in business turnover, reaching Rs 1 lac crore in aggregate deposits and Rs 75 lac crore in gross advances. This robust performance underscores the positive trends in our continued transformative journey coupled with enhancing our digital & technology platforms, brand repositioning with outbound strategies and centralisation of operations creating synergies for our future success. Embracing a cultural shift, we have introduced a diverse range of new products, established new partnerships, strengthened our team, and rationalising internal processes with a customer-centric approach.”
Sekhar Rao, executive director of the bank, reflecting on the bank's performance stated, “Karnataka Bank has displayed robust financial performance exceeding guidance even amidst market volatility. Our strategic initiatives in key areas such as digital transformation, customer service enhancement and launch of new products have started yielding positive outcomes. We remain committed to robust risk management practices and regulatory compliance, ensuring stability and growth.
During the year we will look at further revitalising the Brand “Bharat ka Karnataka Bank,” improve our digital offerings and presence, strengthening of team in core areas while staying committed to overall health of balance sheet.”