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Earnings Call Transcript

Karnataka Bank Earnings Call Transcript: Key Takeaways

Karnataka Bank reported Q1FY27 Net Profit of INR 418.95 Cr, up 43% YoY. Strategy focuses on RAM segment expansion and reducing bulk deposits.

Highlights
Revenue growthNII grew 24% YoY to INR 938.29 Cr.
MarginsNIM improved to 3.20% from 2.82% YoY; yield on advances 8.68%.
Order bookGross Advances at INR 86,610 Cr; pipeline of new retail products.
Demand visibilitySteady private consumption; resilient domestic economic activity despite cost pressures.
Management confidenceHigh; management aims for 'better and best' performance this year.

Growth

Aggregate business grew 11% YoY to INR 1,97,007 Cr; Gross Advances up 17% YoY; NII increased 24% YoY.

Outlook

Guidance of 15% overall business growth, aiming for 1.35%-1.40% ROA and opening 31-32 new branches in FY27.

Risks

Geopolitical West Asia conflict, potential deficient monsoon, elevated commodity prices, and inflationary pressures.

Last quarter's promises, checked

Delivered

  • Guided Total Business 1,92,000 Cr → delivered 1,92,118 Cr (= BEAT)
  • Guided CASA ratio 32-32.5% → delivered 33.61% (= BEAT)
  • Guided NNPA < 1% → delivered 0.98% (= BEAT)

Partly delivered

  • Guided Cost to Income 55-56% → delivered 56.34% (= PARTIAL)
  • Guided ROE ~15% → delivered 12.69% (= PARTIAL)

Missed

  • Guided Gross Advances 84,000-85,000 Cr → delivered 83,339.92 Cr (= MISS)
  • Guided Yield on Advances ~9% → delivered 8.94% (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: KTKBANK. Summary written with AI assistance from the document.

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Karnataka Bank Ltd: key numbers

Share price
₹335.50
Market cap
₹12,695 Cr
Revenue (annual)
₹8,918 Cr
Net profit (annual)
₹1,311 Cr
P/E (TTM)
8.8×Sector 22.0×
Promoter holding
0.00%+0.00% QoQ
FII holding
13.10%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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