Karnataka Bank Reports ₹736.40 Crore Half-Yearly Profit, Highlights Earnings for Q2 FY25

On October 23, 2024, Karnataka Bank announced a strong half-yearly net profit of ₹736.40 crore for the period ending September 2024, marking a 5.06% increase compared to ₹700.96 crore in the same period last year.

The financial results for the quarter and half-year ending September 30, 2024, were approved during a meeting of the Board of Directors in Mangaluru today. For the quarter ending September 2024, the bank reported a net profit of ₹336.07 crore, slightly up from ₹330.26 crore in September 2023.

For the half-year period, the Net Interest Income rose by 6.10% to ₹1,736.92 crore, compared to ₹1,637.09 crore last year. The bank also saw improvements in its asset quality, with Gross Non-Performing Assets (GNPA) decreasing to 3.21% from 3.54% as of June 30, 2024, and Net Non-Performing Assets (NNPA) dropping to 1.46% from 1.66%. A year ago, as of September 30, 2023, the GNPA was at 3.47%, and the NNPA was at 1.36%.

The total business of Karnataka Bank reached ₹1,75,284.08 crore for the second quarter of FY25, compared to ₹1,56,467.71 crore in the same quarter last year, showing a year-on-year growth of 12.03%. The bank’s total deposits rose to ₹99,967.99 crore in Q2 FY25, up from ₹89,531.73 crore in Q2 FY24, reflecting an 11.66% increase. The industry average growth among Scheduled Commercial Banks was 12%.

Karnataka Bank’s gross advances increased to ₹75,316.09 crore in Q2 FY25, up from ₹66,935.98 crore in Q2 FY24, a growth of 12.52%, while the industry average was 13%. Retail advances also grew by 12.20% compared to the previous year. The bank’s gross credit-deposit (CD) ratio stood at 75.34%.

Additionally, the Capital Adequacy Ratio improved to 17.58%, up from 16.20% as of September 30, 2023. In line with the Reserve Bank of India’s updated Liquidity Coverage Ratio (LCR) guidelines, the bank’s LCR was calculated at 143.93%, exceeding the required 100%. However, the Net Interest Margin decreased to 3.38% from 3.65% as of September 30, 2023.

Managing Director and CEO Shri Srikrishnan H commented on the results, stating that Karnataka Bank has shown stable financial performance in Q2 FY25, with improved asset quality and growth in the retail segment, which will remain a key focus. He expressed confidence in achieving growth. 

On October 23, 2024, Karnataka Bank Ltd’s share price opened at ₹216.00 and closed at ₹215.80.

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