Karnataka Bank posts half yearly net profit of Rs736.40 crores with 5.06% YoY jump

Karnataka Bank posts half yearly net profit of Rs736.40 crores with 5.06% YoY jump

Mangalore Today News Network

Mangaluru, October 24, 2024: Karnataka Bank posted an impressive half yearly Net Profit of Rs 736.40 crores, for the half year ended Sept-2024, and the net profit improved by 5.06% compared to September 2023 half year ended net profit of Rs. 700.96 crores.

In the Meeting of the Board of Directors held today at Mangaluru, the Board has approved the financial results for the quarter and the half year that ended September 30, 2024. Furthermore, for the quarter ended September 2024, the net profit stood at Rs 336.07 crores, against Rs 330.26 crores of September 2023.

For the half year ending September 2024, the Net Interest Income has increased by 6.10% to Rs 1,736.92 crores from Rs 1,637.09 crores.

The NPAs have further moderated as the GNPAs reduced to 3.21% against 3.54% as of 30/06/24, while NNPAs also reduced to 1.46% against 1.66% as of 30/06/24. About a year back, i.e. as of 30/09/2023, the GNPA was at 3.47%, and NNPA was at 1.36 %.

The aggregate business of the Bank stood at Rs. 1,75,284.08 crores (on a gross basis) for Q2FY25 compared to Rs. 1,56,467.71 crores in Q2FY24 registering a Y-o-Y growth of 12.03%. The Aggregate deposits of the Bank stood at Rs. 99,967.99 crore in Q2FY25 from Rs. 89,531.73 crores as of Q2FY24 with an increase of 11.66%, (Y-o-Y industry growth of 12% among Scheduled Commercial Banks), Bank’s Gross Advances stood at Rs. 75,316.09 crores in Q2FY25 when compared to Rs. 66,935.98 crore as of Q2FY24 with an increase of 12.52% (Y-o-Y industry growth of 13% among Scheduled Commercial Banks). The Bank’s Retail Advances grew by 12.20% in Q2FY25 in comparison to Q2FY24. The CD ratio (Gross) of the Bank stood at 75.34 %.

The Bank’s Capital Adequacy Ratio stood at 17.58% compared to 16.20% as of 30-09-2023.

In line with RBI’s revised draft guidelines on Liquidity Coverage Ratio (LCR), the Bank has computed the same as on 30th September 2024, that stands at 143.93% as against the statutory target of 100%.  

The Net Interest Margin has decreased to 3.38 % from 3.65 % as of 30/09/2023.

Announcing the results for Q2 FY25, Shri Srikrishnan H, Managing Director & CEO said, "Karnataka Bank has demonstrated stable financial performance in Q2FY25 with improvement in Book quality and growth in Retail segment that will be the focus going forward. Within the prevailing market conditions, the Bank has defined the growth trajectory for the rest of the year, and we are confident of achieving our goals. Our transformative journey is gaining more traction, and we will see the outcomes in the near future.”

Shri Sekhar Rao, Executive Director of the Bank, said, “We are pleased with the performance in Q2 FY25, highlighted by our efforts in consolidation and improved control over NPAs and slippages. Strengthening risk management has been a key focus, resulting in better asset quality.

Our digital initiatives have also made significant progress, enhancing customer experience and operational efficiency. These steps have positioned us well for future growth. As we look ahead to rest of FY25, we remain committed to maintaining this momentum, driving growth through technology, and ensuring a strong and stable balance sheet.”