Earnings Review
Karnataka Bank's Jan-Mar PAT falls 8% YoY as expenses rise
This story was originally published at 20:15 IST on 14 May 2025
Register to read our real-time news.Informist, Wednesday, May 14, 2025
Please click here to read all liners published on this story
--Karnataka Bank Jan-Mar net profit INR 2.52 bln vs INR 2.74 bln year ago
--Karnataka Bank Jan-Mar total income INR 26.87 bln vs INR 26.20 bln yr ago
--Karnataka Bank Jan-Mar provisions INR 310.80 mln vs INR 1.85 bln year ago
--Karnataka Bank to pay INR 5 per share final dividend
--Karnataka Bank gross NPA ratio 3.08% as on Mar 31 vs 3.11% quarter ago
--Karnataka Bank net NPA ratio 1.31% as on Mar 31 vs 1.39% quarter ago
--Karnataka Bank Basel-III capital adequacy ratio 19.85% as on Mar 31
--Karnataka Bank FY25 net profit INR 12.72 bln vs INR 13.06 bln year ago
--Karnataka Bank FY25 total income INR 102.83 bln vs INR 96.17 bln year ago
--Karnataka Bank: Provision coverage ratio at 81.42% as on Mar 31
--Karnataka Bank Jan-Mar net interest income INR 7.81 bln, down 6.4% on year
--Karnataka Bank Jan-Mar NIM 2.98% vs 3.02% in Oct-Dec, 3.32% year ago
--Karnataka Bank deposits at INR 1.048 tln as on Mar 31, up 7% YoY
--Karnataka Bk: CASA ratio at 31.75% as on Mar 31 vs 30.29% qtr ago
By Christina Titus
MUMBAI – Karnataka Bank reported a drop in net profit for the March quarter on account of increase in total expenses and tax outgo. The bank's bottom line fell around 8% on year to INR 2.52 billion. Sequentially, the net profit was down 11%.
Total expenses rose 9% on year to INR 23.12 billion in the March quarter. Of the total expenses, employee cost rose the most by 20% on year to INR 5.26 billion and interest expended rose 8% to INR 14.78 billion. Tax expenses more than doubled to INR 915.7 million in the March quarter from INR 408.2 million in the year-ago quarter.
Despite the rise in expenses, the lender's asset quality improved during the quarter, which is evident from the fall in provisions. The provisions in the March quarter fell 83% on year to INR 310.80 million. The gross non-performing asset ratio and net non-performing asset ratio improved to 3.08% and 1.31% as of Mar. 31, respectively. The comparable ratios for the previous quarter were 3.11% and 1.39%, respectively.
The lender's total income was INR 26.87 billion, of which interest earned was INR 22.58 billion. The net interest income fell 6.4% on year to INR 7.81 billion in the March quarter. Consequently, its net interest margin contracted to 2.98% from 3.02% a quarter ago and 3.32% a year ago.
On the liability side, the bank's deposits grew 7% on year to INR 1.05 trillion as of Mar. 31 and the current account, savings account ratio improved to 31.75% as of Mar. 31 from 30.29% a quarter ago.
The bank is well capitalised with capital adequacy ratio improving to 19.85% as of Mar. 31 from 18.00% a year ago. The provision coverage ratio of the bank was 81.42% as on Mar. 31.
The bank will pay a final dividend of INR 5 per share, it said. For the financial year ended March, the bank posted a net profit of INR 12.72 billion, down from INR 13.06 billion a year ago. Total income for the financial year was INR 102.83 billion, up from INR 96.17 billion a year ago. On Wednesday, shares of the bank closed 2.4% higher at INR 207.68 on the National Stock Exchange. The results were announced after the market hours. End
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
