Karnataka Bank released its financial results for the quarter ended September 30, 2026, pursuant to Regulation 30 of SEBI Listing Regulations. The Board of Directors approved the results in a meeting held in Mangaluru on October 28, 2026.

Financial Performance Highlights

Aggregate Business: Reached an all-time high of ₹2,07,132.41 crores.

Deposits: Total deposits stood at ₹1,15,117.15 crores as of September 30, 2026, showing a 12% YoY growth from ₹1,02,817.19 crores as of September 30, 2025. Retail Term Deposits (RTD) were ₹72,197.32 crores, a 10% YoY increase from ₹65,531.80 crores.

Advances: Gross advances reached ₹92,015.26 crores, registering a 25% YoY growth from ₹73,644.14 crores as of September 30, 2025.

Profitability: Net profit for Q2 FY27 was ₹435.89 crores, a 37% YoY improvement from ₹319.12 crores in Q2 FY26. For the half year ended September 2026, net profit stood at ₹854.84 crores compared to ₹611.52 crores in the same period last year, a 39.79% increase. Operating profit for Q2 was ₹602.22 crores, up 36.86% YoY from ₹440.04 crores.

Net Interest Income: Increased to ₹982.44 crores in Q2 FY27 from ₹728.12 crores in Q2 FY26, a 34.93% growth.

Margins and Ratios: Net Interest Margin (NIM) improved to 3.17% from 2.72% YoY, a 45 bps increase. Return on Assets (ROA) was 1.26%, up 23 bps from 1.03%. Return on Equity (ROE) improved to 12.51% from 10.14%. Cost to Income Ratio improved to 52.68% from 58.93%, a reduction of 625 bps.

Asset Quality: Gross NPA ratio improved by 106 bps to 2.27% from 3.33% YoY. Net NPA ratio declined by 61 bps to 0.74% from 1.35%. Provision Coverage Ratio (including TWO) improved to 85.78% from 81.05%, while PCR (excluding TWO) improved to 68.05% from 60.22%.

CASA: CASA deposits stood at ₹36,605.40 crores, a 14.82% YoY increase from ₹31,881.95 crores. CASA ratio was 31.80%, up 79 bps from 31.01%.

Management Commentary

Shri Raghavendra S. Bhat, Managing Director & CEO, stated that the performance reflects steady growth, sound fiscal oversight, and a customer-first approach. The RAM (Retail, Agriculture, and MSME) segment expanded by 19% YoY to ₹56,968.79 crores from ₹47,958.40 crores. He attributed the improvement in asset quality to disciplined underwriting, robust recovery strategies, and continuous monitoring. The bank is upgrading its technological infrastructure to offer secure and customer-focused financial platforms.

Smt. Biji S.S., Executive Director, emphasized that the advancement results from disciplined implementation, robust operational foundation, and team dedication. The bank is utilizing technology to streamline workflows and improve service quality. The focus remains on improving collection efficiency, enhancing customer engagement, and building employee capabilities through training and development programs.

Comparative Performance Table

The bank provided a detailed performance comparison table showing quarter-ended and half-year-ended figures for Q2 FY27, Q2 FY26, Q1 FY27, H1 FY27, and H1 FY26, with percentage variations for key parameters including Gross Advances, Total Deposits, CASA, Operating Profit, Net Profit, NII, NIM, ROA, Cost to Income Ratio, Gross NPA (amount and %), Net NPA (amount and %), and PCR (including and excluding TWO).