Thank you. Good evening, and thank you for joining Karnataka Bank Q4 FY '26 earnings call.

Karnataka Bank, a bank which began its journey from Mangaluru, a coastal city of Karnataka, has emerged still stronger during the just concluded financial year 2025-26, thanks to the collective resolve of every stakeholder, every customer, and every employee of Karnataka Bank. The results we announced yesterday reflect sustained momentum, which we have built days after days and quarter after quarter.

As your bank continues its journey into its second century of banking excellence, I am pleased to report that we have witnessed meaningful improvement in all the ratios and have delivered on the guidance given during my previous interactions with the investor community, a reflection of the disciplined execution of our strategy and improved operational efficiency. Before going in detail about the results, let me have the opportunity to brief you about the performance of the bank as against the guidance given earlier.

Parameters, the following are the parameters: total business as against the guidance of ₹1,92,000 crore of business, the figure was ₹1,92,118 crore; gross advances against a guidance of ₹84,000 to ₹85,000 crore, it was ₹83,339.92 crore; deposits against a guidance of ₹1,08,000 crore to ₹1,08,778.75 crore; CASA around ₹34,500 to ₹35,000 crore, the figure was ₹36,559 crore; CASA percentage, we have mentioned as a guidance 32% to 32.5%, GNPA whatever guidance was given less than 3%, it was 2.78%; NNPA guidance was less than 1%, it was 0.98%; NIM we have mentioned that 3%+, YoY it was 2.88%, but for Q4 it was 3.07%; cost-to-income what the guidance was given was 55% to 56% against which it was 56.34% FY '26, but Q4 it was 50.47%; ROA we have given the guidance of 1%+ against which it was 1.05%; ROE around 15% we have mentioned, Q4 it was 12.69%, YoY it was FY '26 10.36%; yield around 9% was the guidance against which it was 8.94%; CD ratio it was guidance was 75%+, it was 76.61%; standard restructured guidance was ₹750 crore, it was ₹806.44 crore. I have been highlighting the need for having consistent progress in executing our strategy with greater clarity and direction, and I am happy to note that we were able to deliver on it.

I trust you have had the opportunity to review our financial results and investor presentation, which were shared following the conclusion of the board meeting yesterday. During my previous interactions, I had outlined our key priorities, namely strengthening growth in the retail segments, optimizing funding costs through a higher CASA mix and a reduced reliance on high-cost bulk deposits, and sustaining asset quality while maintaining a sharp focus on margins.

Our growth trajectory has been robust, and ahead of the detailed financial review, I would like to highlight that we have made significant progress across these priorities, which will be evident as I walk you through the financial performance. Before moving on to the business highlights, I would like to take a step back and briefly touch upon the broader financial system.

The Monetary Policy Committee in its April 2026 policy noted that global growth has remained resilient, while domestic economic activity has also sustained its strength, supported by private consumption, monetary easing, and continued government emphasis on infrastructure-led investment. Looking ahead, India's macroeconomic outlook remains resilient despite elevated geopolitical tensions and persistent global trade frictions.

Strong underlying fundamentals, such as steady growth, moderated inflation, and fiscal consolidation, provide the economy with the resilience to navigate external uncertainties. However, the war in West Asia along with rising input costs driven by higher energy prices and supply chain disruptions could weigh on the growth.

The intensity and duration of such conflicts pose risks to both inflation and economic expansion. MPC has highlighted that in navigating through these turbulent times, monetary policy in India will continue to focus on reinforcing price stability while remaining growth-supportive.

In this context of evolving external dynamics, we remain measured and cautious in our outlook. We will navigate these uncertainties with prudence while closely monitoring the evolving inflation trajectory.

Let me now present the business highlights. Bank has achieved its highest-ever aggregate business, which stood at ₹1,92,119 crore as of March 31, 2026, up by 6% QoQ from ₹1,81,394 crore in December '25.

Gross advances stood at ₹83,340 crore as on 31st March 2026, reflecting a QoQ growth of 8% from ₹77,283 crore as on 31st December '25. Our overall strategy is to continue our focus on growing retail, agri, and MSME, that is RAM, which has grown from ₹49,152 crore as on December '25 to ₹51,197 crore as on March '26.

On a QoQ basis, retail, agri, and MSME segment during Q4 FY '26 has grown by 4%, while mid-corporate advances have grown by around 13%. In absolute terms, housing, agri, gold, and vehicle loans have contributed around ₹1,547 crore of growth to our retail segment during the quarter.

As we move forwards, we will continue to focus accelerating retail growth while stabilizing the corporate portfolio through high-quality and better-yielding assets. The bank is committed to reduce its exposure to low-yielding corporate loans that were opportunistically deployed for better yields than treasury.

As conveyed during previous calls, we have started replacing IBPC book with higher-yielding loans. IBPC and pool credit portfolio, which was at ₹4,057 crore as of March 31, 2025, has been brought down to ₹1,707 crore as of 31st March 2026.

Accordingly, around ₹2,350 crore have been replaced during FY 2025-26. Aggregate deposits as at 31st March 2026 was ₹1,08,779 crore, reflecting a QoQ growth of 4% over 31st December '25 at ₹1,04,112 crore.

CASA ratio stood at 33.61% of aggregate deposits as against 31.53% in December '25. In absolute terms, our CASA deposits have grown 11% QoQ from ₹32,829 crore as on 31st December '25 to ₹36,560 crore as on 31st March 2026.

CASA accretion remains a key priority, and we have implemented targeted strategies to further accelerate its growth during the year. The bank has continued to focus on shifting high-cost bulk deposits to granular, that is retail deposits of less than ₹3 crore.

Bulk deposits as a percentage of total deposits have come down from 4.8% as on 31st December '25 to 4.2% as on 31st March 2026. Similarly, bulk deposits as a percentage of term deposits have come down from 7.1% as on 31st December '25 to 6.3% as on 31st March 2026.

In line with the strategy, the bank has deliberately reduced its reliance on high-cost bulk deposits and ensured that most renewals are executed at predefined card rates, thereby enabling tighter control over the overall cost of deposits. Retail term deposits have seen a growth of 2% on a QoQ basis from ₹66,252 crore as on 31st December '25 to ₹67,648 crore.

On YoY basis, retail term deposits has grown by 5%. CD ratio for the quarter stood at 76.61% as compared to 74.23% in December '25 and 74.38% in March '25.

Net interest income, NII for Q4 FY '26 stood at ₹843 crore as compared to ₹792 crore in Q3 FY '26, registering a quarter-on-quarter growth of 6%. On a YoY basis, NII for Q4 FY '26 stood at ₹781 crore, recording an 8% YoY growth.

Net interest margin stood at 3.07% for Q4 FY '26 versus 2.92% in Q3 FY '26 and 2.98% in Q4 FY '25. Improvement in net interest margin was driven by the bank's focused initiatives in the RAM segment with an emphasis on enhancing yields, alongside a calibrated improvement in CASA and retail term deposits aimed at optimizing the cost of funds.

Loan yields: yield on advances for Q4 FY '26 stood at 8.78% as compared to 8.71% in Q3 FY '26, recording a 7 basis points increase. Loan yields will further be strengthened by accelerating retail growth while stabilizing the corporate portfolio through high-quality and better-yielding assets.

Cost of funds: cost of funds stood at 5.38% for Q4 FY '26 as compared to 5.46% for Q3 FY '26, registering an 8 basis points improvement. The sequential QoQ improvement in cost of funds is expected to be supported by our continued efforts to reduce the dependence on bulk deposits and replacing the same with retail deposit at card rates and focus on CASA buildup.

Profit after tax: Q4 FY '26 PAT was ₹408.19 crore as against ₹290.79 crore in Q3 FY '26, an increase of 40%. There is an increase in PAT from ₹252.37 crore in Q4 FY '25, which is a 62% increase.

For the full year FY 2025-26, the bank has achieved its highest-ever PAT at ₹1,310.50 crore as against ₹1,272.37 crore, with a YoY growth of 3%. Stressed assets: gross NPA% as on 31st March 2026 stood at 2.78% as against 3.32% in December '25, thereby showing an improvement of 54 basis points.

The gross NPA% as on March '25 was 3.08%, which is a 30 basis points improvement. Net NPA% as on 31st March 2026 stood at 0.98% as against 1.31% in December '25, demonstrating a 33 basis points QoQ improvement.

Net NPA% as on March '25 was 1.31%, recording a 33 basis points YoY improvement. The sustained quarterly improvement in both gross and net NPA ratios reflects the bank's sustained efforts to curb slippage and enhance monitoring efficiency, supported by the functioning of regional collection centers.

Credit cost stood at 0.10% in Q4 FY '26 against 0.11% in Q3 FY '26. Slippage was 0.20% for Q4 FY '26 against 0.47% in Q3 FY '26.

Recoveries for the quarter, excluding upgraded accounts, stood at ₹150.46 crore in Q4 FY '26 versus ₹114.18 crore in Q3 FY '26. Standard restructured advances, including related accounts: standard restructured advances as on 31st March 2026 was ₹806.44 crore as compared to ₹867.95 crore as on 31st December '25, recording a 7% QoQ reduction.

PCR: in line with the bank's commitment to increase the PCR, the bank has continued making accelerated provisioning, and the PCR, excluding technically written-off account, presently stands at 65.39% as of March '26 as against 61.23% as of December '25. PCR, including technically written-off, stands at 83.54% as of March '26 as against 80.90% as of December '25.

Cost to income: for the quarter ended 31st March 2026, cost-to-income ratio stood at 50.47% as against 58.72% for the quarter ended 31st December '25. For the full year FY 2025-26, bank's cost to income was 56.34% as against 60.11% for FY 2024-25.

The bank has implemented various cost rationalization and monitoring measures to keep expenses under control. Concurrently, our focus on low-cost deposits to reduce the cost of funds along with the emphasis on RAM and high-yield portfolios to enhance loan yields is improving the net interest income and supporting sustained control over the cost-to-income ratio.

Return on equity: Q4 FY '26 ROE stood at 12.69% as against 9.06% in Q3 FY '26. Return on asset: Q4 FY '26 ROA stood at 1.27% as against 0.92% in Q3 FY '26.

Liquidity Coverage Ratio, LCR: as on 31st March 2026, LCR stood at 165.34% as against 186.84% as on 31st December '25 and as against the statutory target of 100%. CRAR: CRAR stood at 20.07% as on 31st March 2026, of which Tier 1 18.68% and Tier 2 1.39%, in comparison to 19.94% as on 31st December '25, of which Tier 1 was at 18.44% and Tier 2 was 1.50%.

Products: we remain on track with our products development and launch initiatives with a continued focus on bridging the remaining gaps in our product offerings. Launches planned during the coming quarters: agri input loans for tobacco crop, short-term agri input loans are extended to registered tobacco growers to meet cultivation requirements with digital onboarding and faster sanctioning under a Tobacco Board tie-up; programmable CBDC enables the funds to be used only for predefined purposes within a specified time or through designated beneficiary; NFC-based QR payments, tap and pay facility provided to QR payments; surrogate-based lending for housing and mortgage loans; drop line OD for MSME; LAP for MSME.

Digital and technology: the bank is leveraging IT investments through modular and faster implementation of solutions. Bank is also exploring leveraging AI tools for improving internal efficiencies, including improving processes.

Few major solutions that are planned for completion in FY 2026-27 are loan originating system revamp with collateral management, implementation of DevSecOps operations, HRMS revamp, treasury revamp, BHIM 3.0. Karnataka Bank's strength lies in its well-established foundation and its readiness to leverage emerging growth opportunities.

Over recent periods, the bank has made meaningful progress in expanding its retail and MSME portfolios, rationalizing funding costs, and enhancing asset quality, collectively creating a strong base for sustained growth ahead. Our approach is firmly anchored in execution with strategic initiatives spanning digital transformation and focused product offerings already gaining momentum.

As these initiatives continue to scale, they are expected to translate into steady improvements in margins, profitability, and key return ratios over the coming quarters. Despite global headwinds arising from geopolitical tensions, volatile commodity prices, and supply chain disruptions, the bank continues to differentiate itself through its prudence, resilience, agility, and strong customer-centric approach.

Supported by robust capital adequacy, comfortable liquidity, and a disciplined execution framework, Karnataka Bank remains well positioned to deliver consistent and long-term value to its stakeholders. Looking ahead with a focused strategic roadmap and improving business momentum, the bank is confident of sustaining healthy growth and enhancing overall financial performance in the periods ahead.

To our investors, customers, and well-wishers, I wish to convey that Karnataka Bank is not resting on the strength of a single year's performance. We will continue our efforts in building an institution that is future-ready, customer-centric, and governance-driven.

We will continue to honor the legacy of our founders even as we embrace the opportunity in this fast-evolving era. Thank you for your trust and continued support, and look forward to all your continuing partnership as we together write the next glorious chapters in the history of Karnataka Bank.

I would now like to hand over the call to the moderator for any questions and feedback from our callers, and we would be glad to take.

Thank you. My question is advances have increased significantly during the quarter.

Can you explain the rationale behind this and how it aligns with your funding and liquidity strategy?

You are aware, as I was telling earlier in the beginning also, since our CRAR was good, I want to increase the advances first. To increase the advances, I need to have the fund.

Fund was not the shortage at all. We could meet that funding requirement with the available resources and to some extent in between some short-term funds, we have met it through the borrowings also.

That was not the constraint at all. Yes, Anshul?

That's it for my side.

Yeah. Thank you.

Yeah. Congratulations, Mr.

Bhat and the entire team.

Thank you. Thank you.

Yeah. This is I think the second quarter with consecutive growth and very good improvement across all the metrics, particularly this quarter.

Sir, first question on the guidance. In Q4, clearly, many metrics have seen significant improvement.

I'm just trying to understand how much should we extrapolate for the current fiscal. If you can please provide guidance on all the key metrics: advance growth, ROA, credit cost, gross NPA, and net NPA.

I was mentioning earlier also in various meetings and forums while meeting you also in person in Mumbai. I was telling that we want to grow steadily, slow but steady, but with some conservative outlook, we want to grow.

The overall position I had given, I will stand firm on it, with a overall business growth of around 15% and we want to have the deposit growth between 10% to 15% and advance growth of 15% to 20%. While focusing on CASA, we have assured that 33%+, we want to maintain 33+% of CASA percentage.

All these ratios, once we do that with a CD ratio of 80%, we are able to meet all what I was mentioning. Maybe it is NIM, maybe it is ROA or spread or GNPA and NNPA level.

By and large, we will stick to the stand which I have taken earlier. We will move further.

Agreed. Advance growth 15% to 20%.

What about ROA and credit cost for the current fiscal? Cost to income.

ROA, I was telling 1%+. 1%+ may be anything, no?

So 1%+, I will still hold on to it. Right now, I am not in a position to tell.

When the ROA was less than 1%, I was telling that 1%+. Today, in Q4, you have seen it is 1%+ only.

Now also I am telling 1%+. That 1%+ will be definitely towards improvement only.

Okay. Also credit cost and cost-to-income ratio, because even your cost to income has fallen significantly in Q4.

Is it fair to assume it will remain around these levels for the entire year?

Yeah. For the entire year, cost-to-income ratio has brought down from 60%+ to 56%, which I was by and large telling 55%+.

It stood at 56%. Q4, there was a significant improvement of 50%, and the overall efforts will be there on to reduce it further.

It will be between 52%, 53%. Once this cost is under control and the business is happening, definitely we will improve it further.

Okay. So 52% to 53% for the cost to income.

Coming to the employee expenses, in Q4 there was a sharp decline on a sequential basis, but there was an increase in other opex. If I look at the total opex, it's largely flat on a sequential basis.

Was there any restatement one line item has increased significantly and one line item has decreased significantly? Also if you could provide the Yeah.

It is not like that. While all efforts are on to reduce the cost, cost reduction is ultimately helping me to improve the overall efficiency.

One is working towards the continuous reduction in cost, other one is improving the income. Here, one-time such measures are not that.

To some extent, there is a upward movement in the yield that has helped us that whatever upward movement in the yield has helped us to make accelerated provision also.

Okay. What will be the expected range for employee expenses for the current fiscal?

See, I will tell you. Employee expenses, it cannot be reduced, that part you will agree.

All efforts will be there on to reduce the other expenditure, while employee expense also we will ensure that whatever required only will be there. Improvement in employees' cost, it is a difficult task, no doubt about it.

The number of employees, who is working or whether additional staff is required, all those things are a business plan. I cannot answer that question right now.

All efforts will be made to control the cost.

I think the employee expense for entire FY '26, the full-year FY '26 employee expense, we should expect a similar number for FY '27 also, not any significant decline, because in Q4 clearly there is a steep decline on a sequential basis.

Yeah. It will be under control, that is my assurance.

Sometimes, see, sudden business expansion and other things, we may require additional manpower also. Taking that into account, it will be duly getting compensated from the business.

Need not worry. While expenditure quantum may go up, it will be duly compensated from the increase in the business.

Hello?

Hello.

Hello.

Sir, my question was on the other income. Other income had sharply risen during the current quarter.

Is it more because of the core fee income going up, and if yes, what's the reason? Or is it more about treasury performance, which has led to higher other income for us?

One minute, my CFO, Mr. Vijayakumar, will answer.

Good evening. The other income regular increase is on account of the fee-based income and also recovery from the technical write-off portfolio.

We have a technical write-off portfolio of about ₹2,500 crore, to that extent...

Recovery under technically written-off account, and it is to see when the business grows along with the interest income, other income also will go from processing charges and other fee-based income if it is a non-funded commission on bank guarantee, all those improvement will be there.

Sir, is it more cyclical in nature because when you look at a treasury gain was just about ₹13 crore, but then your fee income quarter on quarter jumped from about ₹320 crore to ₹430 crore around there. Last year also, we had a similar situation.

Is it that a lot of fee, the general banking fees, what typically bundled up in the fourth quarter, and that's the reason?

That's all. Processing charges and recovery from written-off accounts have majorly contributed to the increase in other income.

Sir, I'm talking about fee income, core fee income. You're just including recovery from bad debt, that ₹52 crore.

See, fee income in that sense, every year, there will be income in the Q4 with regard to ATM card, one-time card it is there. Here it is every year, in the Q4, it will be that.

Got it. Sir, you said that you want to grow at about 15%, 16%, notwithstanding the macro seems to deteriorating.

Do you see that would lead to some kind of yield pressure going forward in FY '27? We've already seen sequential improvement in margins.

Whether we have seen the peak of margins now? How do you basically balance the growth and margins for FY '27?

See, margin in the sense, unless there is a movement in EBLR, it is at the lowest now. If it is moving upward and all, and it gets compensated.

Otherwise, if the trend is continuing, we will be on the same trend. I feel it is at bottomed out, there may not be any chance it is coming down further.

If there is upward movement, that will also take care of the interest income also. By and large it is happening to the market as and when the situation comes, we have to plan accordingly.

ALCO is taking care, duly meeting as and when required. We'll work out.

We are cost-conscious, and we are always working on the pressure of margin and all.

Hi, sir. If I look at slide 24, the number of employees in the first 9 months had increased, and in the last quarter, actually it has declined.

What is actually happening there?

See, the number of staff is always going down every month. It will go down with the superannuation.

As and when required, we will recruit the people in between. Last year, we have opened around 31 branches.

Staffs are required. In between, we recruit also.

During the first H1 or up to Q3, we have recruited some people. Again Q4, there was no recruitment.

Rather, people retired in the 3 months. On an average, 50, 60 people getting superannuated, and the number will go down to that extent.

That is a continuous process. Every month, it will be that.

Sir. My second question is, what is the impact of ECL guidelines on the net worth, and what would be the increase in the credit cost run rate post the implementation of the ECL guidelines?

We have got adequate Capital Adequacy Ratio, number one. I believe there are the guidelines which has now come, which is available to spread over to the next 5 years, and we have studied the impact also.

Maybe around 1%, 1.5% overall will be there. Even that also available for the next 4, 5 years.

That will be spreading over, it means 25 basis points, 30 basis points. We have sufficiently taken care of that.

Yeah. Hi.

Congratulations on a good set of numbers. I really appreciate the way you've increased your PCR by 400 basis points.

I'm pretty sure the bottom-line number would have looked much, much higher if you would have done it at the pace that you've done it in the previous quarters, which was only 100 basis points. This sort of acceleration, where are we aiming to reach by let's say, in the next four quarters in terms of PCR?

Or are you happy with where we are?

See, it is a continuous process. As and when the quarter comes, do the business and how we are working with the efficiency in working, we will decide then and there.

Don't think otherwise. We are very carefully moving forward.

As you only said, it is very good, very well provisioning has been made. We do understand that our responsibility working, taking all precautions.

We will take care for the time being. Yes, going forward, we will decide.

You don't have any number in mind in where you would want the PCR to be by the end of this coming financial year?

Previously, we want to increase 1% every quarter. That number still I'm holding on.

Last quarter we have done more. That is why I said, while moving forward, as and when the requirement will be there, we will take appropriate decision.

Hi, sir. I would request you to note down the questions because I won't get chance again.

My...

Questions? You are asking questions 5 minutes, 10 minutes, what?

Sir, operator won't allow me.

He will allow, don't worry. Your questions are always interesting questions.

He will allow, don't worry. Don't have some restrictions also.

Thank you. I'll link the story.

There were two, three surprises which I'd like to call it out. One was gross slippages came down significantly in quarter 4 at ₹147 crore versus a run rate of ₹250-₹300 crore.

What has been the reason for that? This leads to maybe a interest reversals because lesser slippages leads to lesser interest reversals.

What has been that quantification or what has been that contribution in the interest income, which ultimately leads to NIM going higher because it's a benefit? If you can link this three aspects together, first on what has been the slippage, why the slippages were so low, what should be the normal run rate, should we read more through it, and then how much was the interest reversal contributing to the overall income of Q4?

That is my first question.

Yeah. You are asking the question, should I answer then and there or you are...

You can answer. You can answer one by one, yeah.

With regard to slippage coming down, I was mentioning earlier also, and our focus from the day of taking over charge, I was telling, I want to control the stress. The main area of controlling SMA's and CMA's and recovery under restructured advances efforts, continuously best efforts have been put by my team, and because of that, stress has come down, both under SMA and CMA.

Interest reversal and all, it is a regular phenomenon. Some account during the course will be added, interest reversal will happen.

When it is getting upgraded, it will be reverse. I cannot answer that.

I can get the date. Right now, I'm not having.

It is day in and day out. Regarding the slippage, yes, we will further increase our efforts to improve the quality.

That was the main focus I assured our investors earlier also. Now also I stand by it.

We will see that slippage is stopped. For that, two, three reasons: one, our CRMD team in head office, CRMT team in all the regional offices, ARMBs and all the centers, all these are putting their best efforts to recover.

That is number one. Number two, selection of borrowers at the entry level.

That also we have a focused attention, and I told my team at all 15 centers and loan sanctioning center at head office that whatever may be there, quality cannot be compromised. With all these things put together, definitely going forward, further we will improve as far as recovery is concerned.

Recovery, I will not restrict it only to NPA. Recovery under restructure, recovery under stress, recovery under CMA, whatever.

That is the reason for improvement.

No problem. Second surprise for sure was on the employee cost.

Never in our history we have seen employee cost less than ₹300 crore, at least for last 13, 14 quarters that I can see. First, I understand it's because of the actuarial revaluation which CFO sir had mentioned.

What would be that fluctuations or the swing that leads to this? The reason why I'm asking is that on a full-year number, what should be that number, because it was ₹1,500 crore in FY '25.

We are strengthening our team, branches, sales office and the retail branches. What should be that cost of employee that you are budgeting out for full year in FY '27, given that there are so much of variations that comes because of the actuarial valuation?

That is on the question for the employee expenses.

This question is very difficult to answer. Why?

Because it all depends upon the yield movement. It is all because of geopolitical situation, country's monetary policy, so many other factors.

As far as we are concerned, we are always working on monitoring the cost every now and then. Definitely, I will assure that you know everything, again you are asking this question.

No problem. We will assure you that with this, definitely we will take care of this.

We are always leveraging cost to all other things. That cost control, as I told in the beginning itself, controlling cost and improving the overall efficiency and increasing the fee-based income and other things.

We will work on it, Priyank.

Wonderful. My last question.

Sir, we had a target of ₹85,000 crore book to be ended by this year, and we are close to it. There is no doubt about it.

We are nearing the target. When it comes to the way to achieve this target, and when I see the composition within the book, 65% of the incremental growth has yet been coming via corporate and not via retail or MSME.

In fact, MSME has yet remained flat, and incremental growth via retail to the total loan book is yet slower and lower. What's your thought around what more needs to be done for us to see that firing out?

If you can further bifurcate in terms of what are the key milestones to know that we should think of it, that this would be XYZ things needed for you to achieve 15% to 20% advances growth?

I will answer in a different way. Earlier also, like you, so many people have asked this question.

Last year was a difficult year for us. I admit that.

₹78,000 crore of advance has come down to ₹71,000 crore. If you look at from ₹78,000 to ₹83,000, that is not a growth at all.

If you take into account from ₹71,000 to ₹83,000, there is substantially good growth. Why I'm telling this: agri and retail has not grown, because somewhere I have told you also regarding though our intention is to reduce the bulk advances, why?

Because yield is low. Grow in retail and mid-corporate, somewhere otherwise, you will ask the question, why you have grown negatively?

We have to balance those acts also. Taking that into account, all these retail segments which have degrown while the advances degrown from ₹78,000 to ₹71,000, retail also has degrown.

When I joined, my team said there is no growth in the retail and mid-corporate, that is the need of the hour. I understood that.

What is the time available at my disposal? I joined on July only.

Afterwards, October onwards, these retail trade centers started. Retail trade will not happen overnight.

It will take time. Bulk advances, yes, four, five parties can contribute larger amount, but I'm not interested there.

Growth has to happen in this sector only. Taking that into account, if you ask that question now, because it suits to you, you are right also.

For me, growth should come from retail and mid-corporate only. Going forward, consciously we will reduce the bulk advances, and we will grow in retail and mid-corporate.

This is the only answer I can give. Earlier also, so many investors, you were asking, but you are not believing me to that extent.

I was assuring you, we will do it. We will grow it.

As you rightly said, ₹83,300 and odd, though it is not ₹85,000, still I will say, I told in the earlier meeting also, in Q3 meeting, yes, we have a lot of proposals on hand. As at March, we had ₹2,000 crore of sanctioned, but pending for dispersal.

It has not happened for various reasons. It started happening post April.

Advances is positive. We are positive, we will grow.

No, wonderful, sir. We always have a high confidence in you.

Just last thing. This was question also earlier asked, but not clarified.

Sir, recovery from technical written-off book, we have booked ₹190 roughly ₹190 crore in the other income, and the TWO outstanding book is around ₹2,500 crore. Any target or any thoughts around what should be this recovery that we should pencil in for the coming year?

Along with that, say if we are recovering ₹200 crore, would we have a higher provisioning done to fasten up our PCR? We have done that, but then what should be the number that we should think of, provisioning requirement or say a credit cost on the P&L for FY '27?

Two questions: recovery from TWO book number, and provisioning impact on P&L for FY '27.

Regarding recovery, I will tell you, it is not only for recovery, it is to the business. Our aim is think big, aim high, don't compromise on quality.

We will work on that principle. That principle applies even to the recovery also.

I have traveled across India to meet my regional team. 13 regions I visited personally.

Two regions I have addressed through the video conference. The team is optimistic everywhere, and the team is geared up with regard to the growth in business, growth in recovery.

Growth for the business also target, there is a target for recovery also. What quantum, what number?

Our aim is always to recover 50% of the book of NPA, 50% of the technical written-off. What happens, we have to wait and see because we are working on it.

This is a highly ambitious target, I know. Unless and until, as far as recovery is concerned, if we are not ambitious, we are not able to justify our recovery.

Therefore, ambitious target we have kept. Whether it is possible?

Yes, I was telling earlier also, you are not believing me now also, I know that. We will make all efforts to do that.

It may look very big, but yes, our people on the ground are charged up. I'm hopeful next quarter, you will raise this question as a follow-up question you are asking, I know that.

Even then, we will make our all best efforts.

Hi, sir. Two questions.

Firstly, on the NIMs. I think we had a lot of book which was linked to G-sec.

If you can just break up the book into various EBLR or G-sec, what is the mix of our book? Secondly, sir, on the employee expense, if the CFO sir can give us the data for how much was the gratuity related, because yield increased, so that pool would have gone down in one quarter.

What was that impact specifically if you can share that number? Thank you, sir.

Yes, CFO, can you share that? One is G-sec percentage...

For both the questions, I will share the information later on. I need to get to know your requirement.

Right now, I don't have it.

Sir. Broadly on the NIM side, we have crossed 3%, and I recall that a large part of the book was related to G-sec, and G-sec have been actually hardening.

Given that sort of a thing, because earlier we had a negative impact on our results because the G-sec was low before the repo rate. What is the outlook, sir, for next year NIM?

No, as I was telling in the beginning, if you have seen, I am working on that 3%+ NIM. I will be working on it.

It has come down if you analyze our earlier data, it has come down to as low as 2.72%. It is improving, no doubt about it.

We do not have any G-sec-linked advances. We have EBLR, treasury bill related.

Majority of that under that, around 60%, 65%, and MCLR some portion is there. A small portion is base rate is also there.

To be very frank with you, base rate is 0.31%, MCLR 5.59% as on 26 March, then EBLR linked to G-sec 2.31%, EBLR linked to T-bill rate 55%. This is the component.

Sir. Linked to G-sec and T-bill, right?

Yeah. There we should expect a positive impact if the yields are hardening.

Again it depends upon the market forces.

Please go ahead.

It is Rishvanth Thippeswamy. I'm just correcting the operator.

Good evening, Mr. Thippeswamy.

Good evening, sir. I hope everyone is doing good.

Congratulations. I know in the middle of the management crisis last year, you have joined and you have showed that what you are capable of, and kudos to team Karnataka Bank.

They have put in lot of effort to make sure that they are capable and they are able to deliver it. I would want to also congratulate the Board of Directors for bringing in you, having confidence in you.

I'm also pleasantly surprised. I'm surprised that we have nominated and we're getting executive directors from outside.

My first question is, have we looked out for internal talent? I'm pretty sure that there should be lot of experienced guys who are around.

Then, considering the last year's experience, where we have got in people from outside and because of their work cultural differences, they had difficult times in managing, and then we had to overcome that. That is my first question.

The second question is with respect to the West Asia conflict. Considering that, are we still planning to expand the number of branches this fiscal?

That's my second question.

Yeah. Good evening, Thippeswamy-ji.

Yes, you have both relevant questions, difficult to answer, but I will assure you that the recruitment of ED has been taken based on the need arisen at a particular point of time. ED was there earlier.

ED was not there for the past around 9, 10 months. See, sometimes need arises based on the requirement.

That is one thing. Secondly, it does not mean that, as you rightly said, talent is inside.

No doubt, we are not ignoring the talents. As and when the time passes, you will come to know.

We are not ignoring, we are hand-holding, we are training, we are grooming them up. They will come up in the ladder.

Definitely, yes. Regarding this exit and all which you said, cultural difference, I don't want to talk now.

Earlier also I have told, the past is history, present is reality, future is the requirement. We will work according to that.

Therefore, yes, that is one thing. Secondly, your question with regard to the geopolitical scenario, your plan to open a huge number of branches, whether there is any change.

Like business plans, this is also a plan. In between, if such things arise, we will mid-term course correction.

Depending upon the market requirements, our growth and requirement, all these things will be planned at an appropriate time. Corrective action also will be taken with regard to whatever guidance we have given.

In the guidance, branch also has come. We will take appropriate decision at that time, but definitely we will not put the bank into what do you call, some problem.

Don't worry about it. That is my assurance.

Yeah. Just one question, most of my questions have been answered.

Just want to know the disbursements that you have made for FY '26. What is the figure of full disbursements?

Pardon? Disbursements?

Full disbursements? Loan disbursement, right now, last year, we had repayment of around ₹26,000 crore for the entire year, around ₹26,000 crore.

You can calculate ₹26,000 crore that figure. That's why 26 + 5, ₹31,000-₹32,000 crore.

Okay. Then I'll send you a mail to get the breakup of corporate and mid-corporate also for that.

No problem. No problem.

Thank you very much.

Thank you.

Sir, first of all, many congratulations on a much much better performance than what any of us could have imagined. You've actually rewarded the shareholders with the trust that they have reposed in you, and now you have to beat this performance.

Good evening, Pranay-ji.

Good evening, sir. What I'll ask you, sir, is that we've seen a sharp reduction in cost of manpower this quarter, sir, year on year as well as quarter on quarter.

Has this bottomed out or will we see further reductions?

Further reduction, [laughter] I cannot tell, because as I told you, it all depending upon the requirement. We will optimally use the staff resources.

Definitely, yes. We have got plans for expansion, additional manpower required.

Appropriate time, we'll plan appropriately. By doing so, we can cut the cost.

That is the only answer I can give now. Otherwise, cost control leveraging it with the business requirements and all, taking every moment, we are cost-conscious.

Okay. Thank you, sir, and many congratulations once again.

As shareholders, we are wanting to see the bank grow at this pace.

Thank you. Thank you very much.

Thank you.

Yeah. Sir, namaskar, sir, and hope I'm audible.

Namaste. Namaste.

Yeah.

Yeah. Sir, categorically, as specified by all the speakers earlier that these are definitely commendable results at the backdrop of what looked very drained out earlier.

For investors and even a layman like me, sir, just to take into account, if we do a comparison on an annual basis, it is only this employee cost part that has made a difference to the operating profit. Correct me there, sir, because if we look at our interest income, the operating cost and the employee cost part, we had posted an operating profit before provision of ₹1,827 crore for FY '25, which has risen to ₹1,974 crore.

It is that difference in the lower employee cost unit that has been harping by all the investors who have been asking the question. We would like to understand, sir, what should be the general run rate for the employee cost?

Sir, how are you seeing the current year in terms of how this operating profit number will shape up taking into account our disbursement target, the existing loan book, the recoveries, all the factors that you have just explained to us? How should this line item expand on a quarter-on-quarter or on a year-on-year basis?

Some more color on the same would suffice.

It is not quarter on quarter or half-yearly. It is on a monthly basis.

We have this time changed our strategy that growth should come every month rather. Out of the growth percentage, we said 5 * 3 that growth out of that, first 3 months 5%, next 3 months 8%, next 3 months 9%, the next 2 months 10%, last 14%.

If I analyze the history of our bank for the past 10 years, the growth has come mainly in H2 and more percentage in Q4. Taking that into account, we have bifurcated business plans in such a way that first H1, the growth percentage will be around 39% of the additional growth has come in first H1.

H2, it should be 61%. The bifurcation, as I told you, we are working on that month on month, and full efforts are there already started.

Regarding employee cost and all, as I told you beginning and to others also, it is very much guarded. Cautious decision is taken.

It is employee cost, it is not possible to reduce, but how to optimally use the existing resources. Team has really worked hard.

The team has delivered with that maximum utilization of the staff. The result has come.

The cost in the trial balance figure may look down, but as I mentioned to the query in other cases, that on an average, monthly staff members resignation, retirement, VRS, superannuation, everything will be there. Taking that into account, on an average, 350 to 400 people are retiring.

To the extent required only, we will recruit, because a lot of IT spending is happening. We are trying to move to this additional load taken over by the IT.

All these are planned. Continuous efforts are on.

Therefore, cost may look little reduced, but we will utilize it optimally. I will put it other way.

Thank you very much.

Sir, what should be the operating profit trajectory for the bank on an yearly basis on the base of now ₹2,000 crore? How should we investors penciling in taking into account the current environment also and the type of degrowth which we may expect because of the oil prices and the other geopolitical issue?

On this base, sir, how confident are you first of all we will be posting growth? What should be the number on the operating profit that we should work on?

See, I'm confident only, but certain external situation, how can I predict now? As and when the situation comes, we will take appropriate decision at that particular time.

How to reverse or how to address that issue at an appropriate time, because Prime Minister of India himself has given a statement, yes, cautioning everyone. With all that, things are getting managed.

We also in the bank, we will try to manage best. That is the only answer I can give at this juncture.

Because external forces, we have no control rather. We have to adjust ourselves to change that situation.

We will do it. Definitely, we will do it.

Last year was also not a better year for us, still we have done fairly good, though not very good.

Good evening, sir. Thank you very much for giving me an opportunity to post the question before you.

I am individual investor and also my corporate company also is invested in the Karnataka Bank. First, let me congratulate you for a set of numbers you definitely post which was beyond our expectation.

Also the NPA is another thing which I've been always been telling and you had assuring me which coming in the line with on par with the good banks. For that, congratulation.

Good dividend also you've given. Sir, my only worry is now the situation in the Middle East.

Are we dependent on the deposit from the Middle East like other Kerala-end bank or other thing? Or how are we protected or insulated in three situations are there?

Because as you're number of times said that no one can say what happens tomorrow, no one knows. I agree with you, but still if you can some highlight in this sort of situation on the Middle East with the deposit and other things, we are dependent to what extent and how we can insulate it from this thing.

Thank you very much, sir.

Good evening, Umesh-ji.

Thank you.

As you yourself asked the question, you yourself answered also. My job you made it easy rather.

Thank you very much.

With regard to the depositors from Middle East or whatever, in a way, it good I should not say. All banks are trying for getting good NRI deposits and FCNR deposits, but we have a little portfolio, not sizable portfolio there.

We have majority is local domestic deposits only. Domestic deposits also, see, the situation in externally affects, it affects internally also.

That is not in our control. With regard to your specific question of the deposits from Middle East, it is not sizable one, and we will not be affected much.

That much only I can tell you.

Thank you very much, sir. I got you answered.

Thank you. Thank you very much.

Thank you.

Thank you.

Yes. Thanks to all the investors who have posed the question.

Whatever best, we have presented our case, number one. Number two, still if there are any clarification required, I assure you that feel free to seek the clarification.

We will try to give the best clarification to you, number one. Number two is, yes, lot of people have spoken high about the result.

We assure that we will work still hard. Thanks for reposing the confidence on the bank also.

I need your support going forward. Whatever this plans are there, we will try to come and connect with you, and definitely we will work up to your expectation.

Thank you. Thank you, one and all.

Thank you.