Q3 net profit of Karnataka Bank down

Karnataka Bank posted a net profit of ₹283.60 crore in the third quarter (October-December) of 2024-25 as against ₹331.08 crore during the corresponding period of 2023-24, with a variation of 14.34 %.

In the Board of Directors’ meeting held in Mangaluru on Friday, the board approved the financial results for the third quarter and nine months period ending on December 31, 2024.

The bank posted a net profit ₹1,020 crores in the first nine months (April-December) of 2024-25, as against ₹1,032.04 crore earned during the corresponding period, which is a marginal decline (Y-o-Y) of 1.17%. The decline is primarily due to the change in accounting of Investment Income basis as per the RBI Master Directions. Had the bank continued to follow the earlier accounting policy, ‘Profit before Tax’ would have been higher by ₹100.64 crore for nine months of 2024-25, the bank said in a release on Friday.

The aggregate business during the nine months of this financial year stood at an all-time high at ₹1,77,978.27 crore. Notable improvements were reflected in growth in gross advances and better quality with reduction in gross and net NPAs as well, the bank said.

The bank’s gross advances stood at ₹77,859.75 crore registering Y-o-Y growth of 11.64% (YTD growth of 6.65%) and aggregate deposits stood at ₹1,00,118.52 crores registering Y-o-Y growth of 8.59% (YTD growth of 2.10%).

Speaking on the occasion, H. Srikrishnan, Managing Director & CEO of the bank said: “Karnataka Bank is beginning to accrue the benefits from various transformative steps initiated with growth in the retail & mid-corporate segments and an improved quality of the book. With increased traction from our branch, sales & digital channels, we are confident of sustained and definitive growth outcomes with going forward.”

Sekhar Rao, Executive Director of the bank, said: “Despite the challenging macroeconomic environment, the bank has remained focused on maintaining the quality of our book while ensuring that we are on the right track for sustained growth. Our commitment to digital transformation and technology-driven solutions has strengthened operational efficiency, enabling us to better manage risk and enhance customer experience. We are confident that these strategic initiatives will help us drive sustainable growth moving forward.”