Karnataka Bank Ltd's Q3FY25 Quarter Results
- 01 Feb 2025
Result Summary
- Karnataka Bank Ltd reported a 1.5% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 4.2%.
- Its expenses for the quarter were up by 3.2% QoQ and 11.1% YoY.
- The net profit decreased 15.7% QoQ and decreased 14.4% YoY.
- The earnings per share (EPS) of Karnataka Bank Ltd stood at 7.5 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 2542.02 | 2504.05 | 2438.68 | 1.5% | 4.2% |
Total Expenses | 2108.98 | 2043.49 | 1898.34 | 3.2% | 11.1% |
Provisions & contingencies | 83.79 | 31.33 | 144.42 | 167.4% | -42.0% |
Profit Before Tax | 349.25 | 429.23 | 395.92 | -18.6% | -11.8% |
Tax | 65.70 | 92.99 | 64.71 | -29.3% | 1.5% |
Profit After Tax | 283.55 | 336.24 | 331.21 | -15.7% | -14.4% |
Earnings Per Share | 7.50 | 8.90 | 9.80 | -15.7% | -23.5% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Karnataka Bank Ltd is a well-established entity in the banking sector, operating primarily in India. The bank offers a comprehensive range of financial services and products, including retail banking, corporate banking, and treasury operations. As part of the Indian banking industry, Karnataka Bank competes with other major banks and financial institutions, providing services that cater to both individual and corporate clients. Recent developments in the industry include digital transformation and regulatory changes, which have impacted the operational strategies of most banks. However, specific recent developments pertaining to Karnataka Bank Ltd are not available from the provided data.
Revenue
In the third quarter of the fiscal year 2025 (Q3FY25), Karnataka Bank Ltd reported a total income of ₹2542.02 crores, marking a 1.5% increase from the previous quarter (Q2FY25), where the income was ₹2504.05 crores. Compared to the same quarter in the previous fiscal year (Q3FY24), the total income showed a year-over-year growth of 4.2%, rising from ₹2438.68 crores. This incremental growth in revenue indicates a steady increase in the bank's income over the analyzed periods. The revenue growth reflects the bank's ability to generate higher income from its operations compared to the previous year and quarter.
Profitability
The profitability metrics for Karnataka Bank Ltd show a decrease in the latest quarter. The profit before tax for Q3FY25 was recorded at ₹349.25 crores, which represents an 18.6% decline on a quarter-over-quarter basis from ₹429.23 crores in Q2FY25. On a year-over-year basis, there was an 11.8% decrease from ₹395.92 crores in Q3FY24. The profit after tax followed a similar trend, amounting to ₹283.55 crores in Q3FY25, down by 15.7% from the previous quarter and 14.4% from the same quarter last year. This decline in profitability can be attributed to increased total expenses and a significant rise in provisions and contingencies, which were ₹83.79 crores for Q3FY25 compared to ₹31.33 crores in Q2FY25 and ₹144.42 crores in Q3FY24.
Operating Metrics
The operating metrics highlight several key financial indicators for Karnataka Bank Ltd. Total expenses in Q3FY25 were ₹2108.98 crores, a 3.2% increase from ₹2043.49 crores in Q2FY25, and an 11.1% rise from ₹1898.34 crores in Q3FY24. The substantial increase in total expenses year-over-year indicates higher operational costs. Additionally, despite the decline in profitability, the tax expense was ₹65.70 crores in Q3FY25, showing a decrease of 29.3% from the previous quarter but slightly higher by 1.5% compared to the same quarter last year. Earnings per share for Q3FY25 were ₹7.50, down from ₹8.90 in Q2FY25 and ₹9.80 in Q3FY24, reflecting the impact of decreased net profits on shareholder returns.
