The Karnataka Bank Limited
6,082words
3turns
0analyst exchanges
0executives
Key numbers — 40 extracted
11.6%
39.5%
15.9%
18.7%
25.9%
rs
2
38.1%
13.2%
22.2%
26.5%
8.6%
Rs. 817 Crore
Guidance — 12 items
Growth
opening
“30,775 (39.5%) 12,354 (15.9%) 14,569 (18.7%) 20,162 (25.9%) Q3 FY24 Q3 FY25 Retail MSME Agriculture Others 2 26,607 (38.1%) 9,235 (13.2%) 15,425 (22.2%) 18,474 (26.5%) Deposits Q3FY24 92,195 cr.”
Growth
opening
“119.89 Crore, and Profit Before Tax would be higher by ₹ 100.64 crore for 9M FY25 4 • Continued improvement in book quality due to improved focus on collection and recovery mechanisms • Retail advances grew by 4% QoQ.”
Growth
opening
“• Focus on improving CASA through sales strategy and regional structures Q3 and 9M FY25 Performance at a Glance Profitability Gross Interest Income for Q3 FY25 has grown 6.17% YoY while Interest Expense grew 12.86% over the same period owing to increase in deposit rates, Consequently, NII for Q3 FY25 decreased 4.21% YoY.”
Growth
opening
“ As a result of increased Cost of Funds and Cost of Deposits, NIM declined to 3.02% in Q3 FY25, down from 3.48% in Q3 FY24 and 3.23% in Q2 FY25.”
Growth
opening
“NIM for 9M FY25 stood at 3.26% compared to 3.59% in 9M FY24.”
Growth
opening
“331.08 Crore in Q3 FY24, while that for 9M FY25 stood at Rs.”
Growth
opening
“ The Bank has continued to provide for accelerated provisioning, excluding which we would have seen a YoY growth in 9M FY25 PAT.”
Growth
opening
“ ROA and ROE stood at 1.14% and 11.94% respectively for 9M FY25.”
Growth
opening
“Asset Quality and Liability In line with guidance, Gross NPA decreased further to 3.11% as on 31 December 2024, improving 53 bps YoY and 10 bps QoQ Net NPA also improved to 1.39% as on 31 December 2024 against 1.55% on 31 December 2023 and 1.46% as on 30 September 2024 Credit cost for the quarter stood at 0.12% as against 0.25% in Q3 FY24.”
Growth
opening
“For 9M FY25, the same stood at 0.32% as against 0.67% for 9M FY24.”
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Risks & concerns — 2 flagged
NII Excl Impact of Penal Charges Reclassification - Rs.
— Growth
TWO) 80.64% 53bps YoY 173bps YoY 16bps YoY 11bps YoY * Excluding impact of changes in accounting policy with respect to 'Investments’, Interest Income on Investments would be lower by Rs.
— Growth
Speaking time
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Opening remarks
Growth
11.6% 69,741 77,860 cr. 30,775 (39.5%) 12,354 (15.9%) 14,569 (18.7%) 20,162 (25.9%) Q3 FY24 Q3 FY25 Retail MSME Agriculture Others 2 26,607 (38.1%) 9,235 (13.2%) 15,425 (22.2%) 18,474 (26.5%) Deposits Q3FY24 92,195 cr. Growth: 8.6% Q3FY25 1,00,119 cr. NII Excl Impact of Penal Charges Reclassification - Rs. 817 Crore (Q3 FY25) INR cr. 2,113 3.48% 2,243 3.02% 1,285 828 1,450 793 3.64% 1.55% Q3FY24 GII GIE NII GII GIE NII Q3FY24 Q3FY25 % NIM 14.26% 1.18% Q3FY24 9.63% 0.92% Q3FY25 0.80% Q3FY24 3.11% 1.39% Q3FY25 GNPA NNPA 80.75% 0.40% Q3FY25 80.64% Q3FY24 Q3FY25 ROE ROA Slippage Ratio PCR During the Quarter, the Bank has undertaken major initiatives to replace high-cost bulk deposits with retail term deposits. The bank has also regained its growth momentum in terms of advances, while also maintaining a strong focus on asset quality. The same is evident in the consistently improving GNPA and NNPA numbers. …Well-positioned to accelerate Restructuring completed with entire senior management n
NNPA
1.0% - 1.3% Enhance Asset Quality CASA %: 30.0% - 32.0% Stable Source of Funding ROA %: 1.1% - 1.2% Effective Capital Allocation NIM %: 3.2% - 3.4% Consistent Interest Margins
Cost of Funds
5.25% - 5.5% Optimize Funding Costs Consolidation of financial position to build stakeholder value and enhanced return on equity 26 Products Building a Comprehensive Portfolio of Products Customer-centric approach for creating products Leverage Cross-sell & Up-sell opportunities Comprehensive product suite Pipeline of products for continuous growth Retail Agriculture MSME Retail loans Liability Products ADC Channels Agri Schemes MSME Products Financing ▪ KBL G-Perl – Personal ▪ Digital Current Account Journey launched ▪ KBL One – Corporate Mobile App launched ▪ KBL Genius Student Savings Account launched ▪ QR Sound Box of multi language launched ▪ KBL Woman Savings Account – to be launched ▪ KBL Family Account – to be launched soon ▪ KBL Merchant App - payment app for merchants to be launched soon Loans for Govt Employees launched ▪ KBL PEAK Education Loans for students launched ▪ Pre-Approved Digital Personal Loans to be launched soon 27 New products focused on ‘RAM’ – Retail, Agricul
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