Karnataka Bank Ltd. — Earnings Release 2021

May 26, 2021

Regd. & Head office P. B. No.599, Mahaveera Circle Kankanady Mangaluru -575 002

Your Famly Bank, Across India.

Phone : 0824-2228222 Fax: 0824-2225587 E"ail : investor.grievance@ktkbank.com Website : www.kamatakabank.com CIN : L85110KA1924PLC001128

SECRETARIAL DEPARTMENT

26.05.2021 HO:SEC: t I :2021-22

1. The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza,C-1, Block G Bandra-Kurla Complex, Bandra q3) MUMBAI400 051

1. The General Manager BSE Limited Corporate Relationship Dept Phiroze Jeejeebhoy Towers Dalal Street MUMBAI400 001

Scrip Code: 532652

Scrip Code: KTKBANK

Dear Sir,

We enclose copy of the press communique released by us for your kind information.

Thank You,

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*Karnataka Bank Ltd. Ycx.!r Fantfty Bark. Acres India.

Regd. & Head office P. B. No.599, Mahaveera Grcle Kankanady Mangalun - 575 002

Phone : 0824-2228325 Fax: 0824-2225587 E-Mail : pr@ktkbank.com Webeite : CIN : L85110RA1924PLC001128

BRANCH BANKING & DIGITAL CHANNELS DEPARTMENT

PRESS RELEASE Date: 26.05-2021

KARNATAKA BANK'S ANNUAL NET PROFIT AT AN ALL TIME HIGH 0F RS. 482.57 CRORES.

Kamatalca Bank has posted an all time high annual net profit of Rs. 4L§2±Z crores for the F.Y 2020-21 as against the last year's Rs. 421Zfi crones, thus registering an YoY growth of ±±Zfi%. The net profit for the fourth quarter ended March 2021 is Rs. !1!§ crores as against the net profit of Rs. 2Z£1 crores for the corresponding fourth quarter of 2019-20 and the YoY growth was ±±£§9ro .

in the Meeting of the Board of Directors held teday here in Mangaluru, the Board has approved the Audited Armual financial results for the period ended March 31, 2021 and has also recommended a dividend of 1§7o to be approved in the ensuing 97[h Annual General Meeting.

The business turnover of the Bank was at Rs. 1 The deposits of the Bank stood at Rs. 348.56 crore as on 31-03-2021. 654.86 crores alrd advances at Rs. 51 693.70 crores. The CASA deposits grew by ±4j!Qyo and reached an all time high of £±42% of total deposits as on Slue-2021, as against 2§£2±9/o as on 31.03.2020.

The operating profit grew by 2g:£Z% to RsL 999.14 crore and the PCR (Provision Coverage Ratio) improved to ZQ:Q§ 9/a from §±ZQ% as on 31il3-2020.

The CRAR (CaLphal to Risk Weighted Assets Ratio) of the Bank under Easel Ill has significantly improved to ±±±§§ % against ±Q£Z§% minimum stipulated by RBI. As on 31-03-2020 CRAR was at 12.88%

The Non Performing Assets [NPA] have also moderated. The GNPAs [Gross Non Performing Assets] of the Balck stood at Fts. 2,588.41 clores coustifuting 4L=2±% as of 31-03-2021 as against Rs. 2,799.93 crores constituting 4£2% as on 31ro3-2020. Similarly, the NNPAs [Net Nor Performing Assets] also moderated to

1

Rs. 1,642.10 crones constituting §±§% from Rs. 755.01 crores as on 31i}3-2020 constituting 2jE%. Even though both the GNPAs and NNPAs amounts have come down, the marginal increase in percentage teHn is mainly on account of denominator effect.

The priority sector advances of the Bank stood at 4L§=E§°/o of total advances as against the minimum stipulated target of 4Q% .

Expressing his happiness over the performance of the Bank, Shri Mahabaleshwara in S, Mamging Director & CEO of the Bank said that ``rlhis turned out to be the best result under the unprecedented tough conditions triggered by COVID-19 pandemic. The all-tine high aLrmual net profit of Rs. 4L§2±EZ crores, the highest ever CRAR of ±4:§§°/a, very satisfactory PCR of ZQJ2§%, aL new high of §±42% in CASA, over 90°/a digital transactions, modeI'ation in NPAs etc., all indicate that economic prescription of the Bank for COVID-19 era - i.e CouseIVe, Consolidate and Emerge Sn-ong' - has provided the much required immunity. Further, the Retail and Mid Corporate advances which have been the focus areas of the Bank as part of its Credit Realignment initiative, has registeI.ed an YoY growth of 6±3±%. As there was a degrowih of 53.44% under the Large Corporate sector, the overall credit portfohio has seen negative growth. Hndher, the ratio of Retail : Mid Corporate : Large Corporate has improved to §2£§%, ±§Z2°/o, ±!£23% as against 4E42%, 2§LZ±%, 2E±an% as of March 2020.Even thou{pr we have been successful in overcoming the adverse impact of the pandemic under wave 1.0, we will continue to be 'cautious and conservative' in handling wave 2.0 as well, by keeping intact all our efficiency maximisation efforts. I am optimistic that, once the pace of vaccination picks up the herd immuhity' as well as the massive medical infrastructure that is created while handling wave 2.0, would prove to be very handy in containing the subsequent waves. Further the 2DG developed by the DRDO may prove to be aL miracle drug in treating the pandemic. Added to this, various `economic vaccines' such as Restructuring/GECT , etc. being rolled out by the RBI and Gal would definitely help the needy borrowers and the honking industry alike to effectively overcome the challenges in a resilient way. With an these, I am sure the Bank will continue its growth story in a sustainable way and emerge as a customer centric Digital Bank of Future"

PERFORMANCE HIGHLIGHTS

(Rupees in Crores)

Parameters		Q4FY21	Q 4FY20	% changeVariation	FY21	FY20	$\frac{0}{0}$change/Variation
Net Profit		31.36	27.31	14.83	482.57	431.78	11.76
Operating Profit		383.69	391.54	$-2.00$	1,999.14	1,656.77	20.67
Total Income		1,790.70	2,045.94	$-12.48$	7,727.48	7,736.40	$-0.12$
Net InterestIncome		459.14	529.30	$-13.25$	2,183.18	2,030.36	7.53
Other Income		373.21	406.73	$-8.24$	1,495.07	1,261.63	18.50
Net InterestMargin (%)		2.41	2.86	$-15.73$	2.91	2.84	2.46
Return on Assets(%)		0.15	0.13	15.38	0.57	0.53	7.55
GrossNPA	Amount	2,588.41	2,799.93	$-7.55$	2,588.41	2,799.93	$-7.55$
	(%)	4.91	4.82	1.87	4.91	4.82	1.87
NetNPA	Amount	1,642.10	1,755.01	$-6.43$	1,642.10	1,755.01	$-6.43$
	(%)	3.18	3.08	3.25	3.18	3.08	3.25
$CRAR(%)$Basel III		14.85	12.88	15.30	14.85	12.88	15.30
CASA Ratio (%)		31.49	28.91	8.92	31.49	28.91	8.92
PCR(%)		70.05	64.70	8.27	70.05	64.70	8.27
Digital transactions$(%)$		90.87	86.91	4.55	90.40	85.83	5.32

Srinivas Deshpande

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ASSISTANT GENERAL MANAGER

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