The Karnataka Bank Limited has informed the Exchange regarding a press release dated May 14, 2025 on Audited Financials for March 31, 2025
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Karnataka Bank reported its highest-ever aggregate business of Rs. 1,82,766.21 crores, up 6.89% year-on-year. Net profit for FY25 stood at Rs. 1,272.37 crores, a marginal decline of 2.60% over last year, while Q4 FY25 net profit was Rs. 252.37 crores, down 7.97% YoY. However, on an adjusted basis (excluding the impact of a new RBI investment accounting policy and additional actuarial provisions), FY25 net profit would have been Rs. 1,467 crores (up 12.3% YoY). Gross advances grew 6.79% to Rs. 77,958.72 crores, with retail advances up 15.44%, and total deposits rose 6.96% to Rs. 1,04,807.49 crores. Asset quality improved sharply with GNPA falling 45 bps to 3.08% and NNPA falling 27 bps to 1.31%, while CRAR stood strong at 19.85%. The board has recommended a dividend of Rs. 5 per share (50% of face value).
Headline profit growth looks weak, but the decline is mostly due to RBI-mandated accounting changes and one-time actuarial provisions, with adjusted figures showing healthy double-digit growth. Improving asset quality, strong retail growth, and a 50% dividend are positives for shareholders, though pressure on net interest margins (down 33 bps to 3.19%) remains a watch point.