Karnataka Bank Results: Latest Quarterly Results & Analysis

Karnataka Bank announced Q2FY25 results

• Net profit stood at Rs 336.07 crore, against Rs 330.26 crore of Q2FY24.
• Net Interest Income has increased by 6.10% to Rs 1,736.92 crore from Rs 1,637.09 crore.
• The NP As have further moderated as the GNP As reduced to 3.21 % against 3.54% as of Q1FY25, while NNPAs also reduced to 1.46% against 1.66% as of 30/06/24. About a year back, i.e. as of Q2FY24, the GNPA was at 3.47%, and NNPA wasatl.36 %.
• The aggregate business of the Bank stood at Rs 1,75,284.08 crore (on a gross basis) for Q2FY25 compared to Rs 1,56,467.71 crore in Q2FY24 registering a YoY growth of 12.03%.
• The Aggregate deposits of the Bank stood at Rs 99,967.99 crore in Q2FY25 from Rs 89,531.73 crore as of Q2FY24 with an increase of 11.66%, (YoY industry growth of 12% among Scheduled Commercial Banks), Bank's Gross Advances stood at Rs 75,316.09 crore in Q2FY25 when compared to Rs 66,935.98 crore as of Q2FY24 with an increase of 12.52% (YoY industry growth of 13% among Scheduled Commercial Banks). The Bank's Retail Advances grew by 12.20% in Q2FY25 in comparison to Q2FY24. The CD ratio (Gross) of the Bank stood at 75.34 %.
• The Bank's Capital Adequacy Ratio stood at 17.58% compared to 16.20% as of Q2FY24.
• In line with RBI'srevised draft guidelines on Liquidity Coverage Ratio (LCR), the Bank has computed the same as on 30th September 2024, that stands at 143.93% as against the statutory target of 100%.
• The Net Interest Margin has decreased to 3.38 % from 3.65 % as of Q2FY24.

Shri Srikrishnan H, Managing Director & CEO said: "Karnataka Bank has demonstrated stable financial performance in Q2FY25 with improvement in Book quality and growth in Retail segment that will be the focus going forward. Within the prevailing market conditions, the Bank has defined the growth trajectory for the rest of the year, and we are confident of achieving our goals. Our transformative journey is_ gaining more traction, and we will see the outcomes in the near future."

Shri Sekhar Rao, Executive Director of the Bank, said: "We are pleased with the performance in Q2 FY25, highlighted by our efforts in consolidation and improved control over NP As and slippages. Strengthening risk management has been a key focus, resulting in better asset quality.

Karnataka Bank announced Q1FY25 results:

• Karnataka Bank has posted a record Net Profit of Rs 400.33 crore for Q1FY25 as against Rs 370.70 crore during the corresponding Ql of FY 24 with an YoY (Year-onYear) growth rate of 7.99%.
• The Bank achieved its highest Business turnover at Rs 1,75,619 crore for Q1FY25 compared to Rs 1,49,971 crore for Ql of FY 24 registering a YoY growth of 17.10%.
• Aggregate deposits of the Bank stood at Rs 1,00,164 crore for Q1FY25 as against Rs 86,960 crore for Q1FY24 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 Q1FY24 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 30.06.2024.
• The book quality is steadily improving with Gross NP As declined to 3.54% at end of Q1FY25 compared to 3.68% in the corresponding Q1FY24. Net NPAs [NNPAs] stood at 1.66 % in Q1FY25 from 1.43% in the corresponding Q1FY24.
• The Capital Adequacy Ratio of the Bank has further improved to 17.64% at end of Q1FY25 as compared to 17.00% at end of Q1FY24.

Announcing the results at the Bank's Head Quarters 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 Lakh crore in Business Turnover, reaching Rs 1 Lakh crore in Aggregate deposits and Rs 75 lakh 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".

Shri 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. "

Karnataka Bank announced FY24 results:

• Karnataka Bank reported a record annual net profit of Rs 1,306.28 crore for FY24, marking an 11% increase from the previous year's Rs 1,180.24 crore.
• During a meeting in Mangaluru, the Board of Directors approved the Audited Annual financial results for the year ended March 31, 2024, and proposed a dividend of 55% for approval in the forthcoming Annual General Meeting.
• The Bank incurred a One-time Staff Cost of INR 152.2 crore in Q4FY24 relating to enhanced actuarial provisions arising out of the 12th Bi-partite settlement.
• As of March 31, 2024, the Bank's business turnover stood at Rs 1,71,059.49 crore, showing a YoY growth of 15.06%.
• Gross Advances increased by 19.08% YoY to Rs 73,001.66 crore, while Deposits grew by 12.24% YoY to Rs 98,057.83 crore. CASA deposits accounted for 31.97% of total deposits.
• The Bank's PCR (Provision Coverage Ratio) including Technical write-offs remained at similar levels (~80%) as on March 31, 2024, compared to March 2023 and December 2023.
• The Bank's CRAR (Capital to Risk Weighted Assets Ratio) under Basel III reached a record 18.00%, up from 17.45% last year, primarily due to a capital infusion of Rs 1,500 crore during FY24, through QIP and Preferential Allotments.
• Gross NPA (GNPA) improved to 3.53% as of March 2024 compared to 3.74% as of March 2023, and Net NPA (NNPA) improved to 1.58% compared to 1.70% as of March 2023.
• Standard restructured advances decreased to Rs 1,579 crore as of March 31, 2024, from Rs 2,571 crore as of March 31, 2023. Recoveries remained robust at approximately Rs 280 crore during FY24.
• There was significant improvement in the overall GNPA Restructured Portfolio, which decreased from 11.0% of Gross Advances as of FY22 to 7.9% as of FY23 and further to 5.7% as of FY24.
• The Bank's priority sector advances stood at 60% of ANBC, surpassing the minimum target of 40% specified by RBI.

Announcing the results at the Bank's Head Quarters at Mangaluru, Srikrishnan H, Managing Director & CEO of the Bank said "Karnataka Bank's financial achievements are a testament to its dedicated and ongoing transformational changes. Through a concerted effort to enhance technology-based deliveries coupled with operational efficiency, we are forging a new path forward. With a cultural shift towards relevance, we have introduced a range of new products, re-defined our technology architecture, built new partnerships, strengthened our management team and working on internal processes to be outbound and customer centric.

In Feb 2024, we celebrated the Bank's centenary, marking a historic milestone during our journey of Trust and Excellence. The Bank also successfully completed an ambitious Capital raising program of Rs 1,500 crore in a record six months that demonstrates investors' confidence in our vision and strategic direction. The Bank's brand-new positioning as "Bharat Ka Karnataka Bank" signals our pan-India approach for business presence."

Shri Sekhar Rao, Executive Director of the Bank, reflecting on the bank's performance stated, "Karnataka Bank has demonstrated a strong financial performance with sustained margins as per guidance, even in a volatile market. We continue to create value for our shareholders by enhancing our offerings and adapting to the market changes.

Our focus on fulfilling customer needs through innovation and product centricity is being achieved through fostering new partnerships and digitising the Bank. By embracing Digital transformation, the Bank aims to improve its streamline processes and deliver superior customer experiences. We stay committed to continuing our growth trajectory in the coming years."

Karnataka Bank announced Q3FY24 results:

Profitability

• Net Profit: Karnataka Bank's net profit for 9M FY24 is Rs 1,032.04 crores, marking a 24.87% increase from the previous year's Rs 826.49 crore.
• Q3 FY24 Net Profit: The net profit for the third quarter stood at Rs 331.08 crore, reflecting a 10.11% growth compared to Rs 300.68 crore in the corresponding quarter of the previous year.

Business Turnover

• Total Turnover: The bank attained a business turnover of Rs 1,61,936.36 crore as of 31-12-2023, growing at 9.22% YoY.
• Advances: Total advances rose to Rs 69,740.97 crores, indicating a 9.53% increase YoY.
• Deposits: Total deposits registered at Rs 92,195.39 crores, an 8.98% growth YoY. 

Asset Quality

• Gross NPAs (GNPAs): Gross NPAs were reported at 3.64%, a decrease from 3.74% in March 2023, but an increase from 3.28% YoY.
• Net NPAs (NNPAs): Net NPAs decreased to 1.55% from 1.70% in March 2023 and declined from 1.66% YoY.
• Provision Coverage Ratio (PCR): The PCR stood at 80.75% in December 2023, consistent with 80.86% in March 23 and an improvement from 80.21% compared to December 2022.

Operational Highlights

• The bank's operating profit showed a slight variation of 1.57%.
• Net Interest Margin (NIM) was at 3.46%.
• Current and Savings Account (CASA) ratio remained nearly constant with a 0 basis point change YoY.
• Return on Assets (ROA) was reported at 1.21%.

Shri Srikrishnan H, Managing Director & CEO: "Karnataka Bank's all-round performance can be attributed to improved operational efficiency and ongoing transformational changes undertaken by the Bank. We have consciously worked towards a cultural shift to be more relevant and launched several new products, improved our technology platforms and internal processes. In the last quarter, we expanded our offerings and acquisition strategy internally and through NBFCs/Fintech collaborations as well. We are on the right growth trajectory in our centenary year proudly reflecting upon a century of unwavering commitment to Trust & Excellence in the Pvt. Banking space"

Shri Sekhar Rao, Executive Director: "Karnataka Bank has not only showcased commendable financial results but has also made significant strides in leveraging technology to enhance operational efficiency and customer engagement. Karnataka Bank has demonstrated resilience and adaptability in the face of challenging market conditions. As we celebrate these achievements, Karnataka Bank will continue to invest in technology, work with Fintechs and Partners, fostering a culture of innovation to ensure sustained growth and relevance in an ever-evolving financial ecosystem." 

Karnataka Bank announced Q1FY24 results:

• Net Profit of Rs 370.70 crore, during Q1FY24 as against Rs 114.18 crore recorded during Q1FY23, up 224.66% YoY.
• Operating profit stood at Rs 601.17 crore and Net interest income stood at Rs 814.68 crore in Q1FY24.
• The business turnover of the Bank was at Rs 1,48,449.27 crore as of June 30, 2023, compared to Rs 1,38,936.17 crore as on June 30, 2022, registering a YoY growth of 6.85%.
• The deposits of the Bank stood at Rs 86,959.86 crore with a YoY growth of 7.92% and the advances at Rs 61,489.41 crore with a YoY growth of 5.36%.
• Loan book quality is improving. Gross NPAs declined to 3.68% as of June 30, 2023, compared to 4.03% in Q1FY23.
• The Capital Adequacy Ratio of the Bank has further improved to 17.00% as compared to 15.51% as on June 30, 2022.

Commenting on the Q1FY24 financial results of the Bank, Shri Srikrishnan H, Managing Director & CEO of the Bank, said, "Karnataka Bank, with our strong fundamentals, is rightly positioned to leverage the franchise strengths and poised for accelerated growth. Having made the right investments in Technology, we will re-align our Processes and People to deliver in identified business areas, i.e. MSME, Retail, and Agri. We will work towards creating tech-enabled business models including partnering with new-age Fin Techs that will supplement our growth aspirations."

Karnataka Bank announced Q3FY23 results:

• Q3FY23:
  • Karnataka Bank posted a net profit of Rs 300.63 crore during Q3FY23 with a growth rate of 105.32 % as against Rs 146.42 crore during the corresponding previous quarter.
  • The net profit for 9MFY23 increased to Rs 826.15 crore with a YoY growth rate of 118.68 % as against Rs 377.79 crore of net profit earned during the corresponding period of the previous year.
  • The GNPA has declined by 8 bps to 3.28% in Q3FY23 from 3.36% as compared to the sequential previous quarter Q2FY23.
  • The NNPA also declined by 6 bps to 1.66 % in Q3FY23 from 1.72 % as compared to the sequential previous quarter Q2FY23. The PCR has further improved to 80.21 % from 73.66% a year ago.
  • Bank has clocked a business turnover of Rs 1,47,128.51 crore as of Q3FY23, with a YoY growth rate of 9.79%, deposits of Rs 84,596.40 crore with a YoY growth rate of 7.86 % and advances of Rs 62,532.11 crores with YoY growth rate of 12.51%.

Announcing the results at the Bank's Head Quarters at Mangaluru, Shri Mahabaleshwara M S, Managing Director & CEO of the Bank said, "The impressive all-round performance of the Bank is on account of improved operational efficiency facilitated by various initiatives under KBL VIKAAS. The NII has gone up by 26.74%. NIM has improved to an all-time high of 3.63% as compared to 3.15% as of Q3FY22. Further, the Bank has also shown improvement in GNPA, and NNPA indicating better asset quality. Further PCR has also improved to an all-time high of 80.21%. The consistent and stable performance has been the hallmark of the Bank, and going forward Bank will strive hard for its sustainability with a higher scale"

Karnataka Bank announced Q2FY23 results:

• The Net Profit of Rs 411.47 crore, for Q2FY23, and the net profit grew by 228% compared to Q2FY22 net profit of Rs 125.45 crore.
• The H1FY23, the net profit stood at Rs 525.52 crore, which is also an all-time high against Rs 231.36 crore in H1FY22.
• The Q2FY23, the Net Interest Income also increased by 26.00 % to Rs 802.73 crore from Rs 637.10 crore.
• The NPAs have also further moderated as the GNPAs reduced to 3.36 % against 4.03% as of Q1FY23 while NNPAs also reduced to 1.72 % against 2.16% as of Q1FY23. About a year back, i.e. as of Q2FY22, the GNPA was at 4.52 %, and NNPA was at 2.85 %
• The business turnover of the Bank has touched a new high of Rs 1,41,505.87 crore as of Q2FY23.
• YoY, the deposits of the Bank grew from Rs 76,921.53 crore to Rs 81,633.40 crore, and advances grew from Rs 54,341.57 crore to Rs 59,872.47crore. The CD ratio of the Bank stood at 73.34%.
• The Bank's Capital Adequacy Ratio stood at 15.28 % compared to 14.48 % as of Q2FY22
• The Net Interest Margin has improved to 3.56 % from 3.15% as of Q2FY22.

Shri Mahabaleshwara M.S., Managing Director & CEO of the Bank, said, "Our all-time high Q2FY23 result represents the tipping point of the Bank’s reinvigorated trajectory. Our disciplined execution and aggressive digitalisation, combined with our commitment to superior customer experience, is fortifying Karnataka Bank’s reputation for delivering sustained profitable growth. The milestone of reaching Rs 411.47 crore of net profit earned during the quarter is the highest-ever quarterly profit earned by the Bank. Similarly, Rs 525.52 crores of half-yearly net profit is also a new high. In just six months of the current year, we have already surpassed the last year's total annual net profit of Rs 507.99 crores. The significant jump in net profit is mainly because of improved earnings, improved asset quality, healthy growth of advances, cost containment, and efficiency enhancement, among others. It is also noteworthy that our core fundamentals across all key performance parameters, such as NIM, PCR, ROI, ROA, and CASA Ratio, among others, have improved materially, signifying the arrival of a ‘New KBL’ as envisaged in our Transformation Journey 'KBL-VIKAAS'. I am sure that as we cross our 100th year next year, the Bank will continue to create new benchmarks of performance with its ever-growing customer base, user-friendly digital products and committed employees".

Karnataka Bank Announced Q1FY23 Result :

• In the Meeting of the Board of Directors held today at Bank's Head Quarters Mangaluru, the Board has approved the financial results for the quarter ended June 30, 2022.
• Karnataka Bank has posted a Net Profit of Rs.114.05 crores, during Q1 of FY23 as against Rs.105.91 crores recorded during the corresponding quarter of the previous financial year, i.e. Q1 of FY 22, with an Year on Year growth rate of 7.69%.
• The operating profit of the Bank stood at Rs.412.65 crore as on 30-06-2022. The Net Interest Income increased to Rs.687.56 crore for the quarter ended 30-06-2022 as against Rs. 574.79 crore for Q1 FY 22 with an Year on Year growth rate of 19.62%.
• The business turnover of the Bank was at Rs.1,38,935.71 crore as on 30-06-2022 compared to Rs.1,27,846.08 crore as on 30.06.2021 registering a YoY growth of 8.67%. The deposits of the Bank stood at Rs.80,576.38 crore with a YoY growth of 5.72% and the advances at Rs. 58,359.33 crore with a YoY growth of 13.03%.
• The loan book quality is steadily improving. Gross NPAs declined to 4.03 % as at 30- 06-2022, compared to 4.84 % in the corresponding Q1 quarter of the previous FY 22, GNP As in absolute terms declined to Rs.2,401.39 crore during Q1 of FY 23 from Rs.2,549.06 crore (Q1 of FY 22). Similarly Net NPAs [NNPAs] also declined to 2.16% from 3.02 % in the corresponding Q1 of the previous FY-2021-22. In absolute terms NNPAs declined to Rs.1,262.88 crore during Q1 of FY 23, from Rs.1,557.38 crore (Q1 of FY 22).
• The Bank is making steady progress in its customer franchise building. The Bank has also acquired 1572 MSME accounts in the quarter. The Bank also did well in the sale of Mutual Funds and Co-branded Credit Card. The Bank's retail advances growth continued during the quarter as well.
• The Capital Adequacy Ratio of the Bank has further improved to 15.41 % as compared to 14.58 % as on 30-06-2021. The Bank further strengthened its Balance Sheet by increasing Provision Coverage Ratio to 76.77 % as on 30th June 2022 from 72.16 % as on 30th June 2021.

Commenting on the Q1 results of the Bank, Shri Mahabaleshwara M. S., Managing Director & CEO of the Bank, said "Despite multiple headwinds, the Indian economy has grown in line with RBI's range predictions for GDP in the first quarter of the current fiscal year. We saw tangible recovery in contact-intensive sectors even as the rest of the economy held firm. At Karnataka Bank, we too started the New Financial Year with a comfortable first quarter, wherein the growth has been consistent and broad based as our credit grew by 13.03% YoY and CASA by 12.51 % YoY. Moreover, in spite of a temporary aberration of a corporate advance, which required 100% provisioning, the slippage ratio is at 1.03% and the net profit also grew by 7.69 % YoY. NIM has further improved to 3.33% and the increasing trend in NIM indicates the consistent impmvement in all the contributing factors and is on the expected lines. Going forward, I am confident that with robust opportunities in the economy, we will continue to build up sequential momentum and hope to be consistent in our performance by working as per plan to ensure a sustainable growth."

Karnataka Bank announced Q4FY22 results:

• Karnataka Bank has posted an all time high annual consolidated net profit of Rs. 507.99 crore for the FY22 as against the last year's Rs. 482.46 crore.
• The net profit for the fourth quarter ended March 2022 is Rs. 130.20 crore as against the net profit of Rs. 31.36 crore for the corresponding fourth quarter of F.Y 2020-21, registering a more than 4 times increase in the net profit.
• The business turnover of the Bank was at Rs.1,37,169.88 crore as on 31-03-2022 compared to Rs 1,27,348.19 crore as on 31.03.2021 registering a YoY growth of 7.71 %.
• The deposits of the Bank stood at Rs. 80,386.74 crore with a YoY growth of 6.25% and advances at Rs. 56,783.14 crore with a YoY growth of 10.22 %.
• The CASA deposits grew by 11.23% and reached an all time high of 32.97% of total deposits as on 31-03-2022, as against 31.49 % as on 31.03.2021.
• The GNPAs [Gross Non Performing Assets] of the Bank stood at Rs. 2,250.82 crore constituting 3.90 % as of 31-03-2022 as against Rs.2,588.41 crore constituting 4.91 % as on 31-03-2021.
• the NNPAs [Net Non Performing Assets] also moderated to Rs. 1,376.97 crore constituting 2.42% from Rs. 1,645.05 crore as on 31-03-2021 constituting 3.19 %.

Expressing his happiness over the performance of the Bank, Shri Mahabaleshwara MS, Managing Director & CEO of the Bank said that "The results are the testimony for the hard work done under the transformation journey of the Bank. It is very satisfying to note the all time high Net Profit of Rs 507.99 crore, CRAR of 15.66 % and PCR of 73.47%. Similarly CASA has also reached a new high of 32.97% resulting in further reduction in cost of lending resources. The asset quality has further improved as could be seen from the lower GNP A and NNP As. The consistent and sustainable performance is very much evident and I am confident that going forward Bank is all set for a new high."