Q3 2024 Karnataka Bank Ltd Earnings Call Transcript
Key Points
- Karnataka Bank Ltd (BOM:532652) reported an all-time high nine-month profit after tax of INR 1,032.04 crore, a 24% increase from the previous year.
- Gross advances grew to INR 69,740 crore as of December 31, 2023, marking a significant increase from INR 63,673 crore in December 2022.
- Total deposits reached INR 92,195 crore, the highest ever, reflecting a 9% year-on-year growth.
- The bank's net interest margin (NIM) remains within the guidance range of 3.4% to 3.7%, standing at 3.46% for the quarter and 3.57% for the nine-month period.
- Karnataka Bank Ltd (BOM:532652) has made significant progress in its transformation agenda, including new leadership hires and technology upgrades.
- The cost-to-income ratio increased to 53% due to higher expenses, including a 17% wage hike settlement and investments in technology.
- Slippages remain a concern, with a slippage ratio of 0.8%, primarily from the SME and MSME segments.
- The gross NPA ratio slightly increased to 3.64% from 3.47% in the previous quarter, indicating ongoing asset quality challenges.
- The bank's CASA ratio has been under pressure, maintaining at 31% to 32% despite efforts to improve low-cost deposits.
- There is a significant portion of restructured assets still under stress, with around INR 700 crore identified as potentially vulnerable.
Ladies and gentlemen, good day, and welcome to the Q3 FY 2024 earnings conference call hosted by Karnataka Bank. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Srikrishnan H, MD and CEO from Karnataka Bank. Thank you, and over to you, sir.
Thank you, operator. Good evening all and welcome to Karnataka Bank Q3 FY24 investor call. I warmly welcome each one of you for following the bank and also participating in this call. So just by way of quick introduction, I have our Executive Director, Company Secretary, our Chief Operating Officer and our CFO with me. And I'll lead the discussions, and in case if there's anything else that we need to ask any of my senior colleagues, then we'll get them to talk as well.
We have uploaded today three things. One is we have uploaded the stock exchange notification on the results that Board meeting completed today. And second, we have also
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