Karnataka Bank’s shares saw a 4% drop following the release of its Q3 FY25 financial results. As of 9:22 AM, the shares were trading 3.75% lower at Rs 184.50.
The bank posted an 11.6% YoY growth in gross advances, totaling ₹77,860 crore. Retail advances grew by 15.3% YoY to ₹38,182 crore, while total deposits increased by 8.6% YoY to ₹1,00,119 crore. CASA deposits also saw a rise of 4.7% YoY, reaching ₹30,352 crore.
However, key profitability metrics showed a decline. The bank’s Net Interest Margin (NIM) dropped by 46 bps to 3.02% from 3.48% YoY. Profit After Tax (PAT) stood at ₹284 crore, a 14.3% decrease compared to ₹331 crore in Q3 FY24. Return on Assets (ROA) and Return on Equity (ROE) also saw declines, dropping by 26 bps to 0.92% and 463 bps to 9.63%, respectively.
On the positive side, asset quality improved with the Gross NPA (GNPA) decreasing by 53 bps to 3.11%, and the Net NPA reduced to 1.39% from 1.55% YoY.
Operationally, Karnataka Bank made strides in expanding its customer base with the launch of over 91,000 new debit cards and the introduction of new co-lending partnerships. It also rolled out exclusive loan products for government employees and students, reflecting its focus on innovation and financial inclusivity.
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