Karnataka Bank submitted an analyst presentation to the stock exchanges in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015 (Regulation 30 read with Para A of Part A of Schedule III). The presentation covers the unaudited, reviewed financial results for the quarter and half year ended September 30, 2026, and was hosted on the bank's website for analyst review ahead of the earnings conference call scheduled for October 29, 2026.

Financial Performance Q2 FY27

  • Net Profit After Tax (PAT): ₹435.89 crore, showing 4.04% quarter-on-quarter (QoQ) growth and 36.59% year-on-year (YoY) growth
  • Net Interest Income (NII): ₹982.44 crore, up 4.71% QoQ and 34.93% YoY
  • Net Interest Margin (NIM): 3.17%, decreased by 3 bps QoQ but improved by 45 bps YoY
  • Operating Profit: ₹602.22 crore, increased 3.77% QoQ and 36.86% YoY
  • Total Income (Net of Interest Expense): ₹1,272.53 crore, decreased 1.64% QoQ but increased 18.76% YoY
  • Other Income: ₹290.09 crore, decreased 18.38% QoQ and 15.52% YoY
  • Employee Expenses: ₹361.06 crore, decreased 11.63% QoQ but increased 14.08% YoY
  • Provisions: ₹14.74 crore, decreased 48.64% QoQ and 26.59% YoY
  • Profit Before Tax (PBT): ₹587.48 crore, increased 6.50% QoQ and 39.89% YoY
  • Tax: ₹151.59 crore, increased 14.24% QoQ and 50.33% YoY

Balance Sheet Position (as of September 30, 2026)

  • Total Assets: ₹1,36,585.53 crore, increased 4.68% QoQ
  • Gross Advances: ₹92,015 crore, increased 6% QoQ and 25% YoY
  • Deposits: ₹1,15,117.15 crore, increased 4.28% QoQ and 12% YoY
  • CASA: ₹36,605 crore, increased 2% QoQ and 15% YoY
  • CASA Ratio: 31.80%, decreased 62 bps QoQ but improved 79 bps YoY
  • Borrowings: ₹5,463.77 crore, increased 24.05% QoQ
  • Capital: ₹378.40 crore, increased 0.05% QoQ
  • Reserves & Surplus: ₹13,555.85 crore, increased 1.70% QoQ

Asset Quality Metrics

  • Gross NPA: 2.27%, improved 31 bps QoQ and 106 bps YoY
  • Net NPA: 0.74%, improved 13 bps QoQ and 61 bps YoY
  • PCR (Excluding Technical Write-Offs): 68.05%, improved 102 bps QoQ and 783 bps YoY
  • PCR (Including Technical Write-Offs): 85.78%, improved 108 bps QoQ and 473 bps YoY
  • Credit Cost: 0.002%, decreased 2.8 bps QoQ and 2.8 bps YoY
  • CRAR: 20.36%, decreased 74 bps QoQ and 48 bps YoY
  • Standard Restructured Portfolio: ₹649 crore, decreased 15% QoQ from ₹763 crore

Business Growth

  • Retail Term Deposit: ₹72,197 crore, increased 4% QoQ
  • Retail Advances: ₹46,000 crore, increased 5% QoQ and 17% YoY
  • Credit-Deposit Ratio: 79.93%, improved 148 bps QoQ and 830 bps YoY
  • Yield on Advances: 8.76%, improved 8 bps QoQ but decreased 22 bps YoY
  • Cost of Deposits: 5.13%, decreased 1 bp QoQ and 41 bps YoY
  • Cost of Funds: 5.15%, decreased 1 bp QoQ and 43 bps YoY

NPA Movement (Q2 FY27)

  • Opening Gross NPA: ₹2,233.25 crore
  • Additions: ₹95.71 crore (Slippage ratio: 0.11%)
  • Reductions: ₹237.63 crore (including upgrades ₹52.68 crore, recoveries ₹109.66 crore, write-offs ₹75.29 crore)
  • Closing Gross NPA: ₹2,091.33 crore

Employee Strength

  • Total Employees: 8,983 as of September 30, 2026 (8,962 in previous quarter)
  • Breakdown: 285 Executives, 4,205 Officers, 3,148 Customer Service Associates, 1,345 Office Assistants & Housekeepers

Management and Governance

The presentation highlights an independent board with no shareholder holding more than 5% share capital, including experienced directors from banking and financial services. The management team has been strengthened with key appointments across various functions including Chief Information Security Officer, Head of Credit Sanctions, and Chief Business Officer.

Strategic Initiatives

The bank is accelerating its transformation journey with focus on digital initiatives, product development across retail, agriculture and MSME segments, and government business capabilities including tax collection, GST, customs duty, and EPFO services.