MANAGALURU: Karnataka Bank has posted a record net profit of Rs. 400.33 crores for Q1 of FY25 as against Rs. 370.70 crores during the corresponding Q1 of FY 24 with an YoY growth rate of 7.99%. A meeting of the Board of Directors held at Bank’s Head Quarters Mangaluru, approved the financial results for the quarter ended June 30, 2024.
The bank achieved its highest business turnover at Rs. 1,75,619 crores for Q1 of FY25 compared to Rs. 1,49,971 crores for Q1 of FY 24 registering a YoY growth of 17.10%. The aggregate deposits of the bank stood at Rs. 1,00,164 crores for Q1 of FY 25 as against Rs. 86,960 crores for Q1 of FY 24 with a YoY growth of 15.18 %. Bank’s Gross advances stood at Rs. 75,455 crores as against Rs. 63,012 crores as of Q1 of FY24 with a YoY growth of 19.75%.
The operating profit of the bank stood at Rs. 558.59 crores and net interest income stood at Rs. 903.36 crore as at the quarter ended 30.06.2024. The book quality is steadily improving with Gross NPAs declined to 3.54% at end of Q1 of FY25 compared to 3.68% in the corresponding Q1 of FY24. Net NPAs [NNPAs] stood at 1.66 % in Q1 of FY25 from 1.43% in the corresponding Q1 of FY24.
The Capital Adequacy Ratio of the bank has further improved to 17.64% at end of Q1 of FY25 as compared to 17.00% at end of Q1 of FY24.
Announcing the results, Srikrishnan H, MD&CEO of the bank said “We are happy to report multiple milestones in financial performance crossing Rs 1.75 Lakh crores in business turnover, reaching Rs Lakh crores in aggregate deposits and Rs 75 lakh crores in Gross Advances. This robust performance underscores the positive trends in our continued transformative journey coupled with enhancing our 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”.
Sekhar Rao, Executive Director of the Bank, reflecting on the Bank's performance stated, “Karnataka Bank has displayed robust financial performance exceeding guidance even amidst market volatility. Our strategic initiatives in key areas such as digital transformation, customer service enhancement and launch of new products have started yielding positive outcomes. We remain committed to robust risk management practices and regulatory compliance, ensuring stability and growth. During the year we will look at further revitalising the brand “Bharat ka Karnataka Bank”, improve our digital offerings and presence, strengthening the team in core areas while staying committed to overall health of the balance sheet. ”