India · Delayed Price · Currency is INR The Karnataka Bank Earnings Call Transcripts
Fiscal Year 2027
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Aggregate business reached INR 1,97,007 crore, up 11% YoY, with strong growth in retail, Agri, and MSME segments. NII rose 24% YoY, NIM improved to 3.20%, and PAT increased 43% YoY. Asset quality strengthened, with gross NPA at 2.58% and net NPA at 0.87%.
Fiscal Year 2026
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Aggregate business and profitability reached record highs, with strong growth in retail, agri, and MSME segments, improved asset quality, and robust capital ratios. Guidance targets 15%-20% advances growth, 1%+ ROA, and further cost efficiency, while digital initiatives and risk management remain priorities.
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Q3 FY 2026 saw steady business growth, improved NIM, and strong advances in retail, Agri, and MSME segments. Asset quality remained stable, with targeted improvements in cost-to-income and ROA expected by year-end. Management reaffirmed guidance for 15% business growth and 1%+ ROA.
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Q2 FY 2026 saw steady progress in retail and MSME growth, improved asset quality, and cost control, despite margin pressure from lower yields. Management targets higher CD ratio, NIM above 3%, and further reduction in stress assets, with new products and leadership stability supporting future growth.
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Q1 FY 2026 saw modest business growth, a shift to retail and MSME focus, and improved cost efficiency. Asset quality faced temporary pressure, but recovery efforts and a strong capital base support a positive outlook. NIMs and advances are expected to improve in H2.
Fiscal Year 2025
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Record business turnover and strong deposit growth were achieved, with asset quality improving and a focus on higher-yielding segments. Adjusted profit after tax rose 12.3% year-over-year, and guidance points to improved NIM, stable credit costs, and continued portfolio transformation.
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Business turnover grew 10% year-over-year, with advances up 11.6% and a strategic shift to retail and granular deposits. Asset quality improved, with GNPA at 3.11% and slippages down sharply. NIM guidance is 3.2%-3.4%, and the bank targets 12% loan growth for FY 2025.
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Business turnover and profitability grew YoY, with strong asset quality improvements and a shift to higher-yielding retail and direct corporate lending. Cost-to-income ratio remains elevated due to one-time investments, but normalization is expected. Advances growth guidance revised to 15%-18% for FY25.
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Achieved record business turnover and highest-ever quarterly profit, with strong growth in advances and deposits. Asset quality remains stable, though CASA ratio and yields face market-wide pressures. Guidance maintained for robust growth, improved profitability, and continued capital strength.