The Karnataka Bank (KTKBANK) Q1 24/25 earnings summary

Executive summary

• Achieved highest-ever business turnover at INR 1,75,619 crores, up 17.1% year-over-year and 2.7% quarter-on-quarter.

• Recorded highest quarterly profit after tax (PAT) at INR 400.33 crores, up 8% year-over-year and 43.2% sequentially.

• Gross advances reached INR 75,455 crores, up 19.7% year-over-year and 3.4% quarter-on-quarter.

• Aggregate deposits hit INR 1,00,163.92 crores, up 15.2% year-over-year and 2.1% quarter-on-quarter.

• Continued digital transformation and product innovation, with significant growth in digital adoption and new product launches.

Financial highlights

• Net Interest Income (NII) at INR 903 crores, up 10.9% year-over-year; NIM at 3.54%, up 24 bps sequentially.

• Cost-to-income ratio reduced to 52.76% from 60% last quarter.

• Return on Equity (ROE) at 14.45%, up from 13.71% sequentially.

• Return on Assets (ROA) at 1.38%, up from 1.19% previous quarter.

• Capital adequacy ratio (CRAR) at 17.64% (Tier 1: 15.94%).

Outlook and guidance

• Advances growth expected to continue at ~19% for FY 2025; deposit growth at 13-15%.

• Credit cost guidance for FY 2025 at 0.9-1%; ROE targeted at 15%+ in coming quarters.

• Targeting INR 1 lakh crore gross advances by March 2026, with 50% from RAM segments.

• NIM guidance maintained at 3.5%-3.7%.

• Implemented new RBI Master Directions on investment classification and valuation from April 1, 2024, impacting comparability.