Karnataka Bank's Q1 FY 2025-26 Quarterly Results

Result Summary

• Karnataka Bank Ltd reported a -0.0% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 2.5%.
• Its expenses for the quarter were up by 1.5% QoQ and 7.7% YoY.
• The net profit increased 6.6% QoQ and decreased 27.0% YoY.
• The earnings per share (EPS) of Karnataka Bank Ltd stood at 7.7 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

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 prominent banking institution in India, offering a wide range of financial services. The bank operates in the financial services industry, focusing primarily on providing various banking products and services including loans, deposits, and other financial solutions to both individual and corporate clients. As a full-service bank, it caters to the diverse needs of its customers, ranging from personal banking to business banking services. While specific recent developments for Karnataka Bank are not provided in the data, the bank is known for its ongoing efforts to expand its digital banking capabilities and enhance customer service offerings.

Revenue

For Q1FY26, Karnataka Bank Ltd reported a total income of ₹2619.65 crores, which is nearly unchanged from the previous quarter's figure of ₹2619.97 crores, indicating a negligible quarter-over-quarter (QoQ) change of -0.0%. However, there was a year-over-year (YoY) increase of 2.5% compared to the same quarter in the previous year, Q1FY25, when the total income stood at ₹2557.00 crores. This indicates a moderate improvement in revenue generation over the past year. The stability in quarterly figures suggests consistency in the income streams during this period.

Profitability

Karnataka Bank's profitability for Q1FY26 showed an increase in profit before tax (PBT), which was ₹356.58 crores, up by 13.1% from ₹315.16 crores in Q4FY25. However, this represents a decline of 31.2% from the PBT of ₹518.40 crores in Q1FY25. The tax expense for Q1FY26 was ₹64.08 crores, significantly higher QoQ by 57.3% from ₹40.73 crores in Q4FY25, but lower YoY by 45.7% compared to ₹117.97 crores in Q1FY25. The profit after tax (PAT) for the quarter was ₹292.50 crores, a 6.6% increase from the previous quarter's ₹274.43 crores, yet a decline of 27.0% from Q1FY25's ₹400.43 crores. Earnings per Share (EPS) decreased slightly QoQ by 1.3% to ₹7.70 from ₹7.80 in Q4FY25, and dropped 27.4% YoY from ₹10.60 in Q1FY25.

Operating Metrics

The total expenses for Q1FY26 were ₹2152.27 crores, marking a QoQ increase of 1.5% from ₹2120.09 crores in Q4FY25 and a YoY increase of 7.7% from ₹1998.34 crores in Q1FY25. Provisions and contingencies decreased significantly by 40.0% QoQ to ₹110.80 crores from ₹184.72 crores in Q4FY25, but increased substantially by 175.2% YoY from ₹40.26 crores in Q1FY25. These figures indicate changes in the operational costs and risk management strategies of the bank over the analyzed periods. The data shows that while the bank has managed to control provisions on a quarterly basis, the yearly increase suggests adjustments in response to the broader financial environment.