The Karnataka Bank (KTKBANK) Q4 24/25 earnings summary

Executive summary

• Opened 31 new branches and 39 e-lobbies, expanding to 952 branches and 1,228 ATMs/e-lobbies.

• Focused on retail, agri, MSME, and mid-market segment growth, with new leadership and sales teams.

• Launched 15 new products across liabilities, retail, and MSME segments, including digital and partnership-based offerings.

• Strengthened management team and board with experienced professionals and independent directors.

• Audited standalone and consolidated financial results for FY25 were approved by the Board and received an unmodified audit opinion.

Financial highlights

• Aggregate business turnover reached INR 1,82,766 crore, up 7% year-over-year.

• Gross advances grew 6.8% YoY to INR 77,958.72 crore; retail advances up 15.4% YoY.

• Deposits rose 7.0% YoY to INR 1,04,807.49 crore; CASA ratio at 31.75%.

• FY25 standalone net profit was INR 1,272.37 crore, down from INR 1,306.28 crore in FY24; adjusted PAT would have been INR 1,467 crore excluding one-time items.

• Net interest income (NII) was INR 3,310.38 crore, nearly flat YoY; adjusted NII growth was 2.2% excluding regulatory impacts.

Outlook and guidance

• Targeting advances growth of 11%-12% net, with gross growth (including churn) of 18%-19% for FY26.

• NIM guidance for FY26 is 3.2%-3.4%, with expected improvement of 10-20 basis points.

• Credit cost expected to remain below 0.5% for FY26.

• ROE guidance is 12%-14%, with ROA expected at 1.1%-1.2%.

• Cost-to-income ratio targeted to decline to about 55% by FY26 year-end.