The Karnataka Bank (KTKBANK) Q3 24/25 earnings summary

Executive summary

• Focus on transformation and restructuring, with renewed energy to end FY 2025 on a high note.

• Strategic emphasis on retail and direct-to-corporate advances, and mobilization of retail deposits.

• Enhanced technology infrastructure and operational capacity, with multiple awards for digital innovation.

• Opened six new branches in Q3, with plans for 10-15 more in Q4.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board and joint statutory auditors, with an unmodified conclusion issued on both sets of results.

Financial highlights

• Aggregate business turnover reached INR 177,978 crores, up 10% year-over-year.

• Gross advances at INR 77,860 crores, up 11.6% year-over-year.

• Standalone total income for Q3 FY25 was ₹2,535.38 crore, up from ₹2,438.69 crore in Q3 FY24; nine-month income was ₹7,596.43 crore, up from ₹6,997.45 crore year-over-year.

• PAT for Q3 decreased to INR 283 crores from INR 331 crores year-over-year, mainly due to accounting changes and accelerated provisioning.

• Net interest income for Q3 was INR 792.78 crores, down 4.21% year-over-year.

• CASA ratio at 30.32%, with absolute CASA growth of 4.68% year-over-year.

Outlook and guidance

• Advances book expected to grow by about 12% for FY 2025.

• NIM guidance for FY 2025 is 3.2%-3.4%, with improvement expected in FY 2026.

• ROA guidance for FY 2026 is 1.1%-1.2%; ROE targeted at 12.5%-13%.

• Loan book target of INR 1 lakh crore by June 2026 remains intact.

• No new Basel III compliant unsecured debt instruments were raised during the quarter; equity shares were allotted via ESOPs.