Karnataka Bank Q1 profit falls 27% on higher provisions, capital up

Karnataka Bank Q1 profit fell 27% to Rs 292.40 crore on higher provisions, but asset quality improved and capital adequacy rose to 20.46%

Karnataka Bank on Tuesday reported a 27 per cent year-on-year decline in its net profit to Rs 292.40 crore for the April–June period, mainly due to a rise in provisions.

 

Provisions rose to Rs 110.80 crore in Q1, compared to Rs 40.26 crore in the same period last year.

 

Deposits grew 3.16 per cent year-on-year to Rs 1.03 trillion, while gross advances declined 1.57 per cent to Rs 74,267.02 crore.

 

“During the period, the bank has registered a moderate Y-o-Y growth in top-line numbers,” said Raghavendra S Bhat, managing director and chief executive officer, Karnataka Bank.

 

“Our focus will continue to be on RAM [retail, agriculture, micro, small and medium enterprises] segments along with improving low-cost deposits,” he said.

 

 

On the asset quality front, gross non-performing assets declined to 3.46 per cent from 3.54 per cent. The capital adequacy ratio of the bank improved to 20.46 per cent from 17.64 per cent at the end of Q1 of FY25.