Karnataka Bank reported its Q3 FY25 financial performance, showcasing a robust increase in gross advances while profitability metrics saw declines due to higher costs. The bank’s gross advances stood at ₹77,860 crore, marking an 11.6% YoY growth, and retail advances grew by 15.3% YoY to ₹38,182 crore. Deposits increased by 8.6% YoY to ₹1,00,119 crore, with the CASA ratio rising by 4.7% YoY to ₹30,352 crore.
Key Financial Metrics:
- Net Interest Margin (NIM): Declined to 3.02% from 3.48% YoY, marking a drop of 46 bps.
- Profit After Tax (PAT): ₹284 crore, down 14.3% YoY compared to ₹331 crore.
- ROA: Reduced by 26 bps to 0.92% YoY.
- ROE: Dropped by 463 bps YoY to 9.63%.
- Gross NPA (GNPA): Improved by 53 bps to 3.11% YoY, reflecting better asset quality management.
- Net NPA: Reduced to 1.39% from 1.55% YoY.
The bank’s digital strategy, expansion in co-lending, and product offerings played a key role in enhancing customer outreach. Its focus on CASA and deposit growth through new products and branches further demonstrated its commitment to improving financial health.
Operational Highlights:
- Launched over 91,000 new debit cards in Q3 FY25.
- Expanded co-lending partnerships and opened new branches across India.
- Notable new product launches included exclusive education and personal loan schemes for government employees and students.
Despite profitability challenges due to rising costs, Karnataka Bank remains confident in its strategy, driven by improvements in book quality and strategic growth initiatives.
