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Informist, Tuesday, Aug. 12, 2025

MUMBAI – Karnataka Bank's bottomline for the quarter ended June was weighed down by a sharp rise in provisions other than tax and contigencies, the bank's financial results for Apr-Jun, published post-market hours Tuesday showed. Karnataka Bank's net profit for the quarter stood at INR 2.92 billion, down nearly 27% from a year ago. Provisions other than tax and contigencies surged to INR 1.11 billion, an exponential rise of 257% sequentially. Provisions other than tax and contigencies stood at INR 402.60 million a year ago.  

The gross non-performing asset ratio rose to 3.64% as of Jun. 30 from 3.08% a quarter ago. The net non-performing asset ratio also climbed to 1.44% as of Jun. 30 from 1.31% as of Mar. 31. The bank's provision coverage ratio stood at 81.11% as of Jun. 30.

The total income of the bank rose to INR 26.20 billion for the June quarter, compared with INR 25.57 billion a year ago. Other income of the bank also rose 28% on year to INR 3.58 billion for the quarter ended June. Total expenditure of the bank rose to INR 21.52 billion from INR 19.98 billion in the corresponding period a year ago.

Interest income of the bank fell marginally to INR 22.61 billion in Apr-Jun from INR 22.78 billion a year ago. Interest expense of the bank, meanwhile, rose nearly 10% on year to INR 15.06 billion on year. Operating expenses of the bank also rose to INR 6.47 billion for the reporting quarter, up 3.7% from a year ago. The Basel III capital adequecy ratio of the bank was 20.46% as of Jun. 30. 

The aggregate deposits of the bank stood at INR 1.03 trillion for the reporting quarter, up 3.2% on year, the bank said in a release said. The gross advances of the bank stood at INR 742.67 billion as against INR 754.55 billion a year ago. The operating profit of the bank stood INR 4.67 billion while the net interest income stood at 7.56 billion for Apr-Jun. The net interet margin of the bank fell 72 basis points on year to 2.82% in Apr-Jun.

"During the period, the Bank has registered a moderate year-on-year growth in top line numbers. The investments made by the bank during FY25 on development of infrastructure and processes will start showing results in the coming quarters," said Raghavendra S. Bhat, managing director and chief executive officer of Karnataka Bank, after announcing the quarterly financial results of bank.

He also said the bank will continue to be focused in retail, agriculature, and medium-small-micro enterprises segments along with improving the low-cost deposits, which would result in an improve net interest income as a result. Further, he also said the bank was "pursuing its efforts to create quality credit assets and initiatives are there at all levels to restrict slippages and recover non-performing assets."  

On Tuesday, shares of Karnataka Bank ended flat at INR 172.20 on the National Stock Exchange.  End

Reported by Gowri Lakshmi

Edited by Akul Nishant Akhoury

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