Karnataka Bank recorded a net profit of ₹283.60 crore in the third quarter of 2024-25 against a net profit of ₹331.08 crore in the corresponding period of 2023-24, registering a decline of 14.34 per cent.

During Q3 of 2024-25, the net interest income of the bank stood at ₹792.78 crore (₹827.60 crore in Q3 of 2023-24), and other income at ₹292.36 crore (₹269.92 crore).

During the third quarter of FY25, gross NPA (non-performing assets) of the bank declined to 3.11 per cent (3.64 per cent), and net NPA to 1.39 per cent (1.55 per cent).

The PCR (provisioning coverage ratio) was maintained at 80.64 per cent in December 2024 (80.75 per cent).

The net interest margin of the bank declined to 3.02 per cent (3.48 per cent) during Q3 of 2024-25.

Bank’s gross advances stood at ₹77,859.75 crore registering a year-on-year (YoY) growth of 11.64 per cent, and aggregate deposits stood at ₹1,00,118.52 crore registering YoY growth of 8.59 per cent. CASA (current account savings account) of the bank stood at 30.32 per cent (31.45 per cent) during the period.

The bank posted a net profit of ₹1,020 crore during the first nine months of 2024-25 against against ₹1,032.04 crore earned during the corresponding period previous fiscal, a decline of 1.17 per cent.

A media statement by the bank said the decline is primarily due to the change in accounting of investment income basis the RBI Master Directions. “Had the bank continued to follow the earlier accounting policy, ‘Profit before Tax’ would have been higher by ₹100.64 crore for 9MFY25,” it said.

Quoting Srikrishnan H, Managing Director and Chief Executive Officer of the bank, the statement said: “Karnataka Bank is beginning to accrue the benefits from various transformative steps initiated with growth in the retail and mid-corporate segments and an improved quality of the book. With increased traction from our branch, sales and digital channels, we are confident of sustained and definitive growth outcomes with going forward.”

Sekhar Rao, Executive Director of the bank, said: “Despite the challenging macroeconomic environment, Karnataka Bank has remained focused on maintaining the quality of our book while ensuring that we are on the right track for sustained growth. Our commitment to digital transformation and technology-driven solutions has strengthened operational efficiency, enabling us to better manage risk and enhance customer experience. We are confident that these strategic initiatives will help us drive sustainable growth moving forward.”

On Friday, the scrip of the bank closed at ₹191.70, up 0.58 per cent, against the previous close of ₹190.60.

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