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Karnataka Bank has recorded a net profit of ₹400.33 crore in the first quarter of 2024-25 against ₹370.70 crore in the corresponding period of the previous fiscal, registering a growth of 7.99 per cent.
Though gross NPAs (non-performing assets) of the bank declined to 3.54 per cent in Q1 of FY25 (3.68 per cent in Q1 of FY24), net NPAs increased to 1.66 per cent (1.43 per cent).
Provisions (other than tax) and contingencies declined to ₹40.26 crore in the first quarter of 2024-25 from ₹151.57 crore in the first quarter of 2023-24.
A meeting of the board of directors of the bank on Wednesday approved the financial results for the quarter ended June 30, 2024.
During the first quarter of 2024-25, net interest income of the bank stood at ₹903.36 crore (₹814.68 crore), and other income at ₹279.01 crore (₹323.84 crore). Net interest margin of the bank was at 3.54 per cent (3.68 per cent) in Q1 of FY25. Capital adequacy ratio of the bank stood at 17.64 per cent (17 per cent) during Q1 of FY25.
Biz turnover
Karnataka Bank’s business turnover increased to ₹1.75 lakh crore in first quarter of 2024-25 against ₹1.49 lakh crore in the corresponding period of the previous fiscal. The aggregate deposits of the bank stood at ₹1 lakh crore (₹86,960 crore), and gross advances stood at ₹75,455 crore (₹63,012 crore) during the period.
Srikrishnan H, Managing Director and Chief Executive Officer of the bank, said this robust performance underscores the positive trends in bank’s continued transformative journey coupled with enhancing its digital and 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,” he said.
Sekhar Rao, Executive Director of the bank, said Karnataka Bank has displayed robust financial performance exceeding guidance even amidst market volatility. “We remain committed to robust risk management practices and regulatory compliance, ensuring stability and growth,” he said.
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