Karnataka Bank Ltd. · NSE:KTKBANK
Karnataka Bank — The Karnataka Bank — Q4 FY25 Earnings Presentation
47 slides from Karnataka Bank's earnings presentation, May 14, 2025
Slide 1: Karnataka Bank Ltd. exchange filing cover letter
Karnataka Bank Ltd. Your Family Bank, Across India Regd. & Head Office Phone : 0824-2228184 P. B. No.599, Mahaveera Circle E-Mail : Comsec@ktkbank.com Kankanady Website : www.karnatakabank.com Mangaluru – 575 002 CIN : L85110KA1924PLC001128 SECRETARIAL DEPARTMENT 14.05.2025 HO:SEC:34:2025-26 To: 1.
Slide 2: Investor Presentation Q4 FY25
INVESTOR PRESENTATION Q4 FY25 Banking with Legacy, Embracing the Future
Slide 3: Table of Contents
Table of Contents Independent Board and 01 Experienced Management Team 02 Financial Highlights Accelerating our Transformation 03 Journey 04 Our Strengths and Strategies
Slide 4: Key Achievements During FY25
Key Achievements During FY25 Transformative steps leading to stable financial position… Deposits and Advances Growth Profitability Metrics Asset Quality Gross Advances1 NII excl. Impact of Penal Charges Reclassification - Growth: 6.8% Rs. 3,371 Crore (FY25) 73,002 77,959 Growth: 10.1% INR cr. (In Re
Slide 5: Q4 FY25 Performance at a Glance
Q4 FY25 Performance at a Glance Q4FY25 FY25 Assets • Continued improvement in Gross Advances Retail Advances Deposits CASA book quality due to improved focus on collection and recovery mechanisms 77,959 39,274 1,04,807 33,281 6.8% YoY 7.0% YoY • Retail advances grew by 15.4% 15.4% YoY 10.2% YoY 6.35
Slide 6: Q4 and FY25 Performance at a Glance (1 / 2)
Q4 and FY25 Performance at a Glance (1 / 2) Profitability Gross Interest Income for FY25 has grown 8.6% YoY while Interest Expense grew 14.1% over the same period owing competitive deposit pricing on account of tightening liquidity. Consequently, NII for FY25 increased 0.4% YoY. As a result of
Slide 7: Q4 and FY25 Performance at a Glance (2 / 2)
Q4 and FY25 Performance at a Glance (2 / 2) Distribution Expansion of Co-lending portfolio by stitching new partnership with M/s. Ugro Capital Launched liability DIY platform for Savings Account and Dormant Account Activation First Bank to get onboarded on ONDC rails to offer Personal Loan pro
Slide 8: Experienced Management Team
Experienced Management Team… Strengthening of Management, making the Organization Future Ready Srikrishnan H Sekhar Rao Abhishek Sankar Bagchi MD & CEO Executive Director Chief Financial Officer Former MD & CEO, Jio Payments Former COO, CSB Bank; National Former CFO, NSDL Payments Bank; Bank; ED, Ye
Slide 9: Guided by an Independent Board
…Guided by an Independent Board With no Shareholder Holding >5% Share Capital in the Bank P Pradeep Kumar Justice A V Chandrashekar Kalmanje Gururaj Acharya Part Time Chairman, Independent Independent Director Independent Director Director Former Judge, High Court of Senior Partner, M/s. K G Acharya
Slide 10: Financial Highlights
Financial Highlights Banking with Legacy, Embracing the Future
Slide 11: Profit and Loss Statement - Quarter
Financial Highlights Profit and Loss Statement - Quarter Particulars Q4FY25 Q4FY24 Growth Y-o-Y Q3FY25 Growth Q-o-Q Interest Income 2,258.46 2,200.56 2.6% 2,243.02 0.7% Interest Expense 1,477.78 1,366.53 8.1% 1,450.24 1.9% Net Interest Income 780.68 834.03 -6.4% 792.78 -1.5% Other Income 428.23 419.
Slide 12: Profit and Loss Statement - Annual
Financial Highlights Profit and Loss Statement - Annual Particulars FY25 FY24 Growth Y-o-Y Interest Income 9,013.60 8,298.50 8.6% Interest Expense 5,703.22 4,999.78 14.1% Net Interest Income 3,310.38 3,298.72 0.4% Other Income 1,269.52 1,318.92 -3.7% Total Income 4,579.90 4,617.64 -0.8% (Net of Inte
Slide 13: Balance Sheet
Financial Highlights Balance Sheet Particulars FY25 FY24 Growth Y-o-Y Property & Assets Cash & Balance With RBI 7,525.73 7,716.62 -2.5% Balance With Banks & Money At Call & 458.58 336.67 36.2% Short Notice Investments 24,536.51 24,302.05 1.0% Advances 76,541.48 71,508.64 7.0% Fixed Assets 990.54 927
Slide 14: Key Financial Ratios - Quarter
Financial Highlights Key Financial Ratios - Quarter Particulars Q4FY25 Q4FY24 Growth Y-o-Y Q3FY25 Growth Q-o-Q Gross NPA 3.08% 3.53% -45 bps 3.11% -3 bps Net NPA 1.31% 1.58% -27 bps 1.39% -8 bps CASA Ratio 31.75% 31.94% -19 bps 30.29% 146 bps NIM % 2.98% 3.32% -34 bps 3.02% -4 bps ROA 0.81% 0.92% -1
Slide 15: Key Financial Ratios - Annual
Financial Highlights Key Financial Ratios - Annual Particulars FY25 FY24 Growth Y-o-Y Gross NPA 3.08% 3.53% -45 bps Net NPA 1.31% 1.58% -27 bps CASA Ratio 31.75% 31.94% -19 bps NIM % 3.19% 3.52% -33 bps ROA 1.05% 1.19% -14 bps ROE 11.10% 13.71% -261 bps PCR (Excl. TWO) 58.18% 56.21% 197 bps PCR (Inc
Slide 16: One-off items Impacting the Financials
One-off items Impacting the Financials Actuarial Provisioning for Employee Retiral Benefits Changes in Accounting Policy for Investments During their quarterly audit, the Statutory Auditors recommended a From April 01, 2024, the Bank has changed its accounting policy with respect review of the actua
Slide 17: Understanding Bank's Advances Trajectory
Understanding Bank’s Advances Trajectory Movement in MCLR and EBLR for the last 1 year 11.00 10.50 10.25 10.25 10.30 10.25 10.35 10.50 10.50 10.45 10.45 10.45 10.45 EBLR 10.00 9.85 9.85 ➢ KBL EBLR is tied to G-Sec & T-Bills. 9.50 ➢ Other banks' EBLR is tied to Repo Rate. 9.00 ➢ In anticipation of RE
Slide 18: Profitability
Profitability Operating Revenue (INR Cr.) Other Income (INR Cr.) 4,618 4,580 1319 1270 4,178 993 277 151 97 283 124 126 87 65 419 428 94 48 279 32 270 292 52 32 47 1,253 1,182 1,103 1,085 1,209 6 18 25 40 35 21 17 28 41 796 831 896 258 209 192 205 288 -151 FY23 FY24 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 F
Slide 19: Profitability
Profitability Net Interest Margin 1 Non-Interest Income to Total Income 3.70% 3.52% 13.71% 12.09% 12.35% 3.19% FY23 FY24 FY25 FY23 FY24 FY25 Return on Equity Return on Assets 15.42% 1.21% 13.71% 1.19% 11.10% 1.05% FY23 FY24 FY25 FY23 FY24 FY25 18 Note1: Excluding impact of Reclassification of Penal
Slide 20: Liability Profile
Liability Profile Deposit Profile (INR Cr.) 104,807 100,142 99,881 100,028 104,807 97,988 97,988 26,187 26,187 25,112 25,112 24,918 24,993 24,619 7,094 5,671 5,763 5,678 7,094 6,181 6,181 66,695 71,526 66,695 69,553 69,125 69,731 71,526 FY24 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Term Current
Slide 21: Advances
Advances Gross Advances Profile 1 (INR Cr.) 77,959 75,455 75,316 77,860 77,959 73,002 73,002 61,303 27% 29% 27% 28% 27% 28% 28% 20% 23% 24% 23% 23% 26% 26% 24% 30% 46% 50% 46% 47% 49% 49% 50% 50% FY23 FY24 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Retail Mid Corporate Large Corporate 1 Retail, Mi
Slide 22: Advances: Sectoral Loan Exposure
Advances Sectoral Loan Exposure FY25 FY24 8.6% Others 10.3% Others 16.4% Agri Advances 1.1% LRD 13.7% Agri Advances 0.9% LRD 5.3% CRE 5.0% CRE 16.1% Micro & Small 16.2% NBFC 13.5% NBFC 13.9% Micro & Small 4.2% Medium 4.0% Medium 9.7% Large Enterprises Enterprises 9.4% Large Enterprises Enterprises 1
Slide 23: Asset Quality
Asset Quality GNPA & NNPA Provision Coverage (Incl. & excl. TWO) 3.74% 3.53% 80.86% 79.22% 81.42% 79.22% 77.97% 80.14% 80.64% 81.42% 3.08% 55.50% 56.21% 58.18% 3.53% 3.54% 56.21% 55.15% 56.03% 58.18% 3.21% 3.11% 3.08% 53.97% 1.70% 1.58% 1.31% 1.58% 1.66% 1.46% 1.39% 1.31% FY23 FY24 FY25 Q4 FY24 Q1 F
Slide 24: Asset Quality: Restructured Portfolio
Asset Quality Restructured Portfolio GNPA & Restructured Assets (INR Cr.) Standard Restructured Portfolio (incl. Related Accounts) 7.9% 5.7% 4.4% 5.7% 5.4% 4.9% 4.5% 4.4% 3.3% 15.2% Others Personal 17.6% Loans 1.9% 4,864 MSME 4,157 4,157 4,063 Agriculture 3,397 3,683 3,533 3,397 2,293 3.9%LRD 5.4% C
Slide 25: Asset Quality: Movement of NPA
Asset Quality Movement of NPA Quarterly Annual Particular (INR Cr.) Q4 FY25 Q3 FY25 Q2 FY25 Q1 FY25 Q4 FY24 FY 25 FY24 Opening Gross NPA 2,419.06 2,414.92 2,668.45 2,578.42 2,536.72 2,578.42 2,292.91 Additions 254.92 292.69 242.67 416.49 527.58 1,206.77 1,650.20 Sub Total ( A ) 2,673.98 2,707.61 2,9
Slide 26: Asset Quality: Sector-wise Breakup Analysis
Asset Quality Sector-wise Breakup Analysis Non-Performing Assets Breakup (INR Cr.) Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Sectors NPA NPA% NPA NPA% NPA NPA% NPA NPA% NPA NPA% MSME 1,163 7.9% 1,011 6.8% 923 6.3% 955 6.6% 960 6.9% Agriculture 610 6.1% 557 5.1% 485 4.2% 492 4.0% 533 4.2% Housing 285 2
Slide 27: Efficiency Ratio
Efficiency Ratio Cost to Income Ratio* Product Per Customer (PPC) 60.1% 53.2% 47.1% 1.22 1.22 1.22 1.21 1.20 1.20 1.20 1.21 FY23 FY24 FY25 FY23 FY24 FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Business per Employee (INR Cr.) Staff Cost (INR Cr.) 20.9 20.9 1,538 20.3 1,373 19.2 19.8 19.8 19.2 1,069 17.0
Slide 28: Key Ratios
Key Ratios Capital Adequacy Ratio Risk Weighted Assets (INR Cr.) 53.9% 53.9% 50.9% 53.9% 54.9% 54.8% 54.0% 50.9% 19.9% 19.9% 17.5% 18.0% 1.5% 18.0% 17.6% 17.6% 17.6% 1.5% 62,533 61,543 62,533 63,554 63,634 63,228 61,543 1.8% 1.8% 1.7% 1.7% 1.6% 53,378 3.3% 18.4% 18.4% 16.2% 16.2% 15.9% 15.9% 16.0% 1
Slide 29: Shareholder Value
Shareholder Value Shareholding Pattern EPS & Market Capitalisation 45.0 10,000 39.8 40.0 37.9 Others, Foreign 35.0 0.4% Institutions, 33.7 8,000 12.9% 30.0 7,897 Domestic 6,000 6,637 25.0 Institutions, 18.2% 20.0 Indian 4,238 Body 4,000 15.5 Public, 15.0 Corporate, 13.9 61.2% 4.9% 1,899 9.8 10.0 NRI
Slide 30: Accelerating our Transformation Journey
Accelerating our Transformation Journey Banking with Legacy, Embracing the Future
Slide 31: Targeted Performance Improvement to Boost Returns
Targeted Performance Improvement to Boost Returns Cost to Income %: 53.0% - 56.0% Manage Operating Expenses NNPA: 0.9% - 1.1% Enhance Asset Quality ROA %: CASA %: 1.1% - 1.2% 30.0% - 32.0% Effective Capital Allocation Stable Source of Funding NIM %: 3.2% - 3.4% Consistent Interest Margins Cost of Fu
Slide 32: Products
Products Building a Comprehensive Portfolio of Products Customer-centric approach for creating products Leverage Cross-sell & Up-sell opportunities Comprehensive product suite Pipeline of products for continuous growth Retail Agriculture MSME Retail loans Liability Products ADC Channels Agri Schemes
Slide 33: Digital and Technology: Digital Touchpoints
Digital and Technology Digital Touchpoints 3,803,335 782,230 5,551,988 Mobile App Installations Net Banking Users Debit Cards 2.74% QoQ 1.2% QoQ 1.12% QoQ 125,116 1,516 QR related metrics ATM Networks 13.26% QoQ 0.66% QoQ 32
Slide 34: Digital and Technology: Awards
Digital and Technology Awards The bank had won 6 awards at IBA’s 20th Banking Technology Conference. Digital and Analytics initiatives were part of the awards and were acknowledged Runner up: Best Fintech and DPI adoption Special mention for Analytics: Best AI and ML Adoption 33
Slide 35: Digital and Technology: Moving towards a Digital-First Bank
Digital and Technology Moving towards a Digital-First Bank Creating a disruptive ”Bank within a Bank” Our Objectives Infrastructure to Meet Our Objectives First-in-class digital factory Increase in Customer Base Products and Business Solutioning have been integrated into the Technology and Digital H
Slide 36: Digital and Technology: Scalable and Reliable Architecture
Digital and Technology Scalable and Reliable Architecture Embedding data & analytics in business processes for data-driven decision making Foundation of Architecture Integration with the Business Impact on the Business First-in-class scalable central data Retail Loan Propensity repository on cloud w
Slide 37: Digital and Technology: Analytics Factory
Digital and Technology Best in class Analytics Factory: 360day PitStop Business Dashboards Driving Agility and Precision in Decisions Business Systems ensuring New Insights have Rails for Outcomes Live - Customer Relationship Management Live - Early Warning Signals (CRM) & Customer (EWS) Engagement
Slide 38: Our Strengths and Strategies
Our Strengths and Strategies Banking with Legacy, Embracing the Future
Slide 39: Strategic Roadmap
Strategic Roadmap Creating a Strengthening Financial A Performance-Driven C Position to Create Culture Long-Term Value Delivering Excellence in Digitalisation and Core Businesses with Partnership to Underlying Technology Rebuild Outward-Facing, Accelerate Book Growth Transformative steps Platform le
Slide 40: Driving Excellence in Proven Core Competencies
Driving Excellence in Proven Core Competencies A. Consistent Emphasis on our Strength Areas Our Legacy Building on Our Legacy ▪ Tradition with Innovation 13.7 Mn ▪ Outbound Sales Culture Happy customers ▪ Startup-like Agility 100 Year Legacy 34.2% 46.4% ▪ Capitalise on community network ▪ MSME and R
Slide 41: Diversified Offerings with Established Brand Equity
Driving Excellence in Proven Core Competencies A. Diversified Offerings with Established Brand Equity Retail and Personal Banking Agriculture Banking MSME ▪ Housing ▪ Agriculture & allied activities ▪ Working capital finance for traders & ▪ Vehicle ▪ Farm development manufacturing industries ▪ Gold
Slide 42: Key Capabilities in Government Business
Driving Excellence in Proven Core Competencies A. Key Capabilities in Place to Leverage Opportunities in the Government Business Focused to be one of the top govt. collection Banks Empaneled as 'Agency Bank’ for direct tax collection Integrated on National Jan Samarth portal State-level Treasury int
Slide 43: Strong Geographical Footprint
Driving Excellence in Proven Core Competencies A. Strong Geographical Footprint Steady Growth in Locations Served 7 4 2 9 22 1 10 12 2 952 1,516 1 Branches ATM and Recyclers 3 17 7 20 5 Presence Across All Tiers 10 59 Top 5 States Rural 27 Karnataka 606 23.6% Metro 27.7% Maharashtra 59 7 45 606 Tota
Slide 44: Rebuild Outward-Facing, Business-Centric Teams
Creating a Performance Driven Culture B. Rebuild Outward-Facing, Business-Centric Teams Outbound sales team and “Feet on the Street” for growing Inducted 259 Sales Officers and 92 Feet on Ground for liabilities and expanding the home loan book covering key markets and target segments Better control
Slide 45: Foundation in place to Drive Next Leg of Digital Innovation
Digitalisation Propelling Robust Book Growth C. Foundation in place to Drive Next Leg of Digital Innovation ▪ Live with CRM: Integration of customer data and interactions across Marketing and Sales department State-of-the-art ‘Technology, Digital & ▪ Enhance customer engagement and improve Product H
Slide 46: Initiatives towards Digitisation
Digitalisation Propelling Robust Book Growth C. Initiatives towards Digitisation Executed initiatives Planned future initiatives for 2025 Colending partnership Pre-approved and National Back Office Hyperlocal SEO expansion - UGro Flow-Based Loans Transformation Core Systems Supply Chain / Trade Dair
Slide 47: Disclaimer
Disclaimer This presentation has been prepared by Karnataka Bank (the “Bank”) solely for providing information about the Bank. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner. This presentation has been prepared by the Bank based on informatio