Q1 2025 Karnataka Bank Ltd Earnings Call Transcript
Key Points
- Karnataka Bank Ltd (BOM:532652) recorded the highest business turnover in its history at INR1,75,619 crores, up by 17.1% YoY.
- The bank achieved its highest quarterly profit of INR400.33 crores for Q1 FY25, an 8% increase YoY.
- Gross advances reached a record high of INR75,455 crores, reflecting a 19.7% YoY growth.
- Net interest income (NII) increased to INR903 crores in Q1 FY25 from INR834 crores in the previous quarter.
- The bank's return on equity (ROE) improved to 14.45% for Q1 FY25, up from 13.71% in the previous quarter.
- The CASA deposit ratio decreased to 30.55%, indicating a need for improvement in this area.
- Net NPA increased slightly from 1.58% last quarter to 1.66%, primarily due to delayed recoveries.
- Provision coverage ratio (PCR) decreased to 78% from 79% in the previous quarter.
- The yield on advances has been declining, attributed to competitive repricing and rate concessions.
- The cost of funds increased to 5.57% for Q1 FY25 from 5.42% in the previous quarter, reflecting market-wide liquidity tightness.
Ladies and gentlemen, good day, and welcome to the Q1 FY 2025 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, Sidhanth, and good evening to all ladies and gentlemen. This is Srikrishnan, MD, CEO of Karnataka Bank. I am speaking to you from our headquarters in Mangalore. I'm joined by our Executive Director, Sekhar Rao, senior management team members, GMs, Ravi Chandar, who is Head of Credit; Jayanagaraja Rao, who is GM in charge of Branch Banking and Retail; the Chief Compliance Officer, Vinay Bhatt; CFO, Abhishek Bagchi; and Company Secretary, Sham.
So we are happy to talk to all of you and introduce the Q1 FY25 results for Karnataka Bank. So post completion of the successful centenary year in FY23, '24, we had major valuations in
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