Media Release
Mangaluru, May 14: Karnataka Bank recorded significant progress in the full year FY’25 financials with an all-time high aggregate business at Rs 1,82,766.21 crores. The bank has made notable improvements in its three primary objectives of expanding the distribution network, improving the quality of asset book and working towards improving financial metrics.
In the meeting of the board of directors held today at Mangaluru, the board approved the financial results for the quarter and full year ended March 31, 2025.
For Q4 FY 2024-25, the bank posted a net profit of Rs 252.37 crores as against Rs 274.24 crore during the corresponding period previous year.
The bank posted a net profit for the full year 2024-25 of Rs 1,272.37 crores, as against Rs 1,306.28 crores earned during the corresponding period previous year, a marginal decline (Y-o-Y) of 2.60%. However, the corresponding previous year figures are not directly comparable due to changes in accounting policy for investments (as per master direction issued by RBI) since April 2024. Had the Bank continued to follow the earlier accounting policy, profit before tax would have been higher by Rs. 147.51 crores. Excluding the impact of the above and the additional actuarial estimates for retirement benefits of Rs 113 crores, the adjusted profit after tax of the bank would have been Rs 372 crores for Q4 FY25 (Y-o-Y growth of 35.6%) and Rs 1,467 crores for the full year of FY25 (Y-o-Y growth of 12.3%).
Bank’s aggregate deposits stood at Rs 1,04,807.49 crores registering YoY growth of 6.96%, while gross advances stood at Rs 77,958.72 crores registering YoY growth of 6.79%. During FY 25, the bank’s focus on retail business yielded results and the growth in retail advances was 15.44% and the share of retail deposits improved to 93.4% in FY 25 from 93.2% in FY24.
In absolute terms, retail advances grew by Rs. 5,253 crores during the year, from Rs 34,020 crores as on March 31, 2024 to Rs 39,273 crores as on March 31, 2025. CASA Deposits grew by 6.35%, from Rs 31,293 crores as on March 31, 2024 to Rs 33,281 crores as on March 31, 2025, a net accretion of Rs 1,988 crores.
The asset quality has improved significantly during FY’24-25 with GNPA% declining by 45 bps to 3.08% from 3.53% as compared to March 2024. Similarly, the NNPA% also declined by 27 bps to 1.31% from 1.58% as compared to March 2024.
The PCR has gradually improved to 81.42% in March 2025 (from 79.22% in March 2024). The Bank is comfortably capitalized with a CRAR of 19.85%.
Announcing the results at the Bank’s headquarters at Mangaluru, Srikrishnan H, managing director & CEO of the bank said “Karnataka Bank’s focus in developing retail, mid-market and direct-to-corporate lending businesses is picking up steam as reflected in the book growth during the last few quarters. The Bank is well-positioned on the liability franchise, digital and branch-led distribution. Based on sound financial parameters achieved during the year, substantial improvement in the book quality and improved technology platforms and processes, the outlook for FY’25-26 looks very promising.”
Sekhar Rao, executive director of the bank, reflecting on the bank's performance stated, “FY25 was a year marked by macroeconomic headwinds, tightening liquidity, and pressure on Net Interest Margins (NIMs). Despite these, we demonstrated resilience and adaptability, delivering a stable performance and reinforcing our strategic priorities.
A key driver of our progress this year was our increased focus on the retail segment. By deepening customer engagement, expanding digital offerings, and tailoring financial products to meet evolving household and small business needs, we achieved healthy growth in retail advances and improved portfolio diversification.
Looking ahead, we believe our sharpened focus on retail banking, combined with a robust digital backbone and customer-centric approach, positions us well for sustained, inclusive growth. We thank all our stakeholders for their continued trust and support.”
Performance Highlights
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