Karnataka Bank Achieves 13% Asset Growth in FY25, Outpacing Credit Growth Expectations

Karnataka Bank plans to grow its asset book by 12-13% this year, surpassing the market growth, due to its unique financial position. The bank will focus on high-yielding retail and mid-corporate loans, replacing lower-yielding corporate loans. This shift in lending strategy will result in a concentrated growth in deposits, mainly from the retail, agrarian, and mid-market segments, which will constitute two-thirds of the bank’s book and business. The bank’s MD wants to maintain its retail-oriented approach, avoiding high-cost bulk deposits. Instead, the bank will prioritize providing services to the retail customer base, which will fuel its growth.