KARNATAKA BANK LTD.
P&L
Quarterly Consolidated
vs Q3 FY26
Karnataka Bank Net Profit Hits Record ₹1,310.50 Cr
19 May 2026 · 19 May, 8:12 pm
Summary
Karnataka Bank reported a record annual net profit of ₹1,310.50 crore for FY2025-26, a 3% year-on-year increase, and achieved an all-time high aggregate business of ₹1,92,118.67 crore. The fourth quarter of FY26 was strong, with net profit growing 40% quarter-on-quarter to ₹408.19 crore and Net Interest Margins (NIMs) improving to 3.07%. Managing Director & CEO, Shri Raghavendra S. Bhat, highlighted the success as a result of a resilient business model, focused growth strategy, and improved asset quality. The bank plans to continue focusing on building a high-quality, diversified credit portfolio, leveraging technology for efficiency, and enhancing digital capabilities to drive sustainable and profitable growth.
Key Highlights
- 1
Karnataka Bank reported a record annual net profit of ₹1,310.50 crore for FY 2025-26, marking a 3% year-on-year improvement.
- 2
The Bank achieved an all-time high Aggregate Business of ₹1,92,118.67 crore for FY'26, registering a 5.12% year-on-year growth.
- 3
Net Profit for the quarter ended March 31, 2026, increased by 40% quarter-on-quarter to ₹408.19 crore.
- 4
Gross Advances grew by 8% quarter-on-quarter to ₹83,339.92 crore, and CASA Deposits rose by 11% quarter-on-quarter to ₹36,559.66 crore as of March 31, 2026.
- 5
Net Interest Margins (NIMs) improved by 15 basis points quarter-on-quarter to 3.07% for the quarter ended March 31, 2026.
- 6
The Bank's asset quality improved significantly in FY26, with Gross Non-Performing Assets (GNPA) declining by 54 bps to 2.78% and Net Non-Performing Assets (NNPA) decreasing by 33 bps to 0.98% compared to December 2025.
- 7
The Board of Directors approved the audited annual financial results and proposed a dividend of 50% for approval in the forthcoming Annual General Meeting.
Management Comments
Shri Raghavendra S. Bhat
The Bank has achieved an all-time high annual net profit of Rs. 1,310.50 crme, reflecting the strength of its resilient business model, focused growth strategy, and continued emphasis on operational efficiency. The asset quality of the Bank has also improved significantly, supported by sound lending practices, effective recovery mechanisms, and sustained monitori.ti.g of ·_ the loan portfolio. Further, the Bank has achieved an all-time high aggregate business turnover of Rs. 1,92,118.67 crore, underlining the strong momentum in both deposits and advances and reaffirming the confidence reposed by customers and stakeholders. . . The strategic focus will also remain on building -a high..:quality arid -" diversified credit . . . . . . . .... • p()rtfolio, improving operational efficiency through . technology .· and • analytics-driven • • •• initiatives, enhancement of_ low-cost deposits and enhancing digital capabilities to deliver a •• seamless customer experience. The Bank ai:rrts to deepen its presence across key markets b_y leveraging its distribution network and strengthening customer engagement. Further, the Bank will continue to emphasize cross-sell and up-sell opp~rtunities< through a . . . • comprehensive customer-centric product suite, while maintaining strong governance st~ndards and·a prudent risk management framework to ensure sustainable.~nd profitable growth.
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