Karnataka Bank Q2 net profit flat at ₹336.07 crore

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Karnataka Bank Ltd recorded a net profit of ₹336.07 crore in the second quarter of 2024-25 against a net profit of ₹330.26 crore in the corresponding quarter of 2023-24, registering a growth of 1.76 per cent.

The meeting of the board of directors of the bank on Wednesday approved the financial results for the quarter and the half year that ended September 30.

Net interest income of the bank stood at ₹833.56 crore in Q2 of FY25 against ₹822.41 crore in Q2 of FY24, a growth of 1.36 per cent. Fee-based income was at ₹222.75 crore (₹196.58 crore in Q2 of FY24) during the period.

The net interest margin decreased to 3.23 per cent during the second quarter of 2024-25 from 3.62 per cent in Q2 of 2023-24.

Gross NPAs down

During the second quarter of 2024-25, the gross NPAs (non-performing assets) of the bank decreased to 3.21 per cent (3.47 per cent). However, the net NPA increased to 1.46 per cent (1.36 per cent) during the period.

The bank’s capital adequacy ratio stood at 17.58 per cent as on September 30, 2024 compared to 16.20 per cent as on September 30 2023.

The aggregate business of the bank stood at ₹1,75,284.08 crore (on a gross basis) for Q2 of FY25 compared to ₹1,56,467.71 crore in Q2 of FY24, a growth of 12.03 per cent.

The aggregate deposits stood at ₹99,967.99 crore (₹89,531.73 crore), and gross advances stood at ₹75,316.09 crore (₹66,935.98 crore) during the period. The retail advances grew by 12.20 per cent Q2 of FY25 in comparison to Q2 of FY24. The CD ratio (gross) stood at 75.34 per cent.

The liquidity coverage ratio stands at 143.93 per cent against the statutory target of 100 per cent as at September 30.

Quoting Srikrishnan H, Managing Director and Chief Executive Officer of Karnataka Bank, a media statement said: “Karnataka Bank has demonstrated stable financial performance in Q2 FY25 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.”

Sekhar Rao, Executive Director, 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. Our digital initiatives have also made significant progress, enhancing customer experience and operational efficiency. These steps have positioned us well for future growth. As we look ahead to rest of FY25, we remain committed to maintaining this momentum, driving growth through technology, and ensuring a strong and stable balance sheet.”