Highlights
- Revenue over the Year and quarter: The company experienced a substantial growth of 11.74 % in the past year, substantial increase in revenue by 4.16 %.
- Profit over the Year and quarter: Challenges in sustaining profitability for Karnataka Bank Ltd.. Profit dropped by -22.37 % Year to Year, Karnataka Bank Ltd.’s profitability dropped by -17.14 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -30.45 % Year to Year. EPS decreased by -19.51 % in previous quarter. Analysis needed for shareholder value.
- Gross NPA % over the Year and quarter: Gross NPA decreased by -3.02 % this quarter. Leading to a -5.61 % reduction over the past year.
- Net NPA % over the Year and quarter: Net NPA increased by 1.94 % this quarter. Contributing to an overall annual reduction of -7.06 %.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Revenue | Rs. 1969.31 Cr | Rs. 2112.61 Cr | Rs. 2200.56 Cr | + 4.16 % | + 11.74 % |
| Interest | Rs. 1109.24 Cr | Rs. 1285 Cr | Rs. 1366.53 Cr | + 6.34 % | + 23.2 % |
| Expenses | Rs. 823.02 Cr | Rs. 757.76 Cr | Rs. 938.28 Cr | + 23.82 % | + 14 % |
| Financing Profit | Rs. 37.05 Cr | Rs. 69.85 Cr | Rs. -104.25 Cr | -249.25 % | -381.38 % |
| Financing Margin % | 1.88 % | 3.31 % | -4.74 % | -8.05 % | -6.62 % |
| Other Income | Rs. 395.23 Cr | Rs. 326.07 Cr | Rs. 419.41 Cr | + 28.63 % | + 6.12 % |
| Depreciation | Rs. 0 Cr | Rs. 0 Cr | Rs. 0 Cr | 0 % | 0 % |
| Profit before tax | Rs. 432.28 Cr | Rs. 395.92 Cr | Rs. 315.16 Cr | -20.4 % | -27.09 % |
| Tax % | 18.22 % | 16.34 % | 12.92 % | -3.42 % | -5.3 % |
| Net Profit | Rs. 353.53 Cr | Rs. 331.21 Cr | Rs. 274.43 Cr | -17.14 % | -22.37 % |
| EPS in Rs | Rs. 11.33 | Rs. 9.79 | Rs. 7.88 | -19.51 % | -30.45 % |
| Gross NPA % | 3.74 % | 3.64 % | 3.53 % | -0.11 % | -0.21 % |
| Net NPA % | 1.7 % | 1.55 % | 1.58 % | + 0.03 % | -0.12 % |
Today, we’re looking at Karnataka Bank Ltd.’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a robust year-over-year revenue growth of 11.74 %. However, it did see a marginal increase of 4.16 % from the previous quarter. Interest expenses surged remarkably by 6.34 % from the previous quarter, yet the year-over-year increase remains at a moderate 23.2 %. Expenses ticked up slightly by 23.82 % quarter-on-quarter, aligning with the annual rise of 14 %.
Financing profit, while down -381.38 % compared to last year, faced a quarter-on-quarter dip of -249.25 %, signaling a short-term contraction in margins. The Financing Margin % contradicts this narrative, showing weakness on an annual basis with a decrease of -6.62 %, but a shrinkage of -8.05 % sequentially. Other income rose by 28.63 % compared to the last quarter, despite an annual growth of 6.12 %. Profit before tax declined annually by -27.09 % but saw a reduction from the preceding quarter by -20.4 %. Tax expenses as a percentage of profits decreased slightly by -5.3 % compared to last year, With a more notable quarter-on-quarter decrease of -3.42 %.
Net profit fell by -22.37 % year-on-year, but witnessed a -17.14 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -30.45 % but a quarterly fall of -19.51 %. The Gross NPA % indicates concerning trends with a quarterly drop of -0.11 % and an annual decline of -0.21 %, pointing to weakening recovery efforts and a deteriorating credit environment. In contrast, the Net NPA% showcases improvements, revealing a quarterly increase of 0.03 % and an annual decline of -0.12 %, reflecting persistent vulnerabilities in asset quality and risk management. In summary, Karnataka Bank Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Revenue | Rs. 1969.31 Cr | Rs. 2112.61 Cr | Rs. 2200.56 Cr | + 4.16 % | + 11.74 % |
| Interest | Rs. 1109.24 Cr | Rs. 1285 Cr | Rs. 1366.53 Cr | + 6.34 % | + 23.2 % |
| Expenses | Rs. 823.02 Cr | Rs. 757.76 Cr | Rs. 938.28 Cr | + 23.82 % | + 14 % |
| Financing Profit | Rs. 37.05 Cr | Rs. 69.85 Cr | Rs. -104.25 Cr | -249.25 % | -381.38 % |
| Net Profit | Rs. 353.53 Cr | Rs. 331.21 Cr | Rs. 274.43 Cr | -17.14 % | -22.37 % |
| EPS in Rs | Rs. 11.33 | Rs. 9.79 | Rs. 7.88 | -19.51 % | -30.45 % |
| Gross NPA % | 3.74 % | 3.64 % | 3.53 % | -0.11 % | -0.21 % |
| Net NPA % | 1.7 % | 1.55 % | 1.58 % | + 0.03 % | -0.12 % |
In reviewing Karnataka Bank Ltd.’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Revenue saw a robust 11.74 % year-on-year growth, however, there was a minor increase of 4.16 % from the previous quarter. Interest expenses climbed by 6.34 % quarterly and sharply by 23.2 % annually, demonstrating effective cost control and improved debt management. Expenses rose by 14 % compared to the previous year, with a 23.82 % increase quarter-on-quarter. Financing Profit dropped by -381.38 % annually, and saw a -249.25 % decrease from the last quarter.
Net Profit showed yearly decrease of -22.37 %, and experienced a -17.14 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -30.45 % annually, however dipped by -19.51 % compared to the last quarter. Gross NPA% decreased by -0.11 % quarterly and fell by -0.21 % annually, showcasing improvements in asset quality. Net NPA% improved by 0.03 % quarterly and decreased by -0.12 % annually, showcasing effective recovery and risk management strategies. In essence, while Karnataka Bank Ltd. faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
