Karnataka Bank Records Highest Quarterly Net Profit of Rs 418.95 Crores; Aggregate Business Reaches All-Time High

Karnataka Bank Records Highest Quarterly Net Profit of Rs 418.95 Crores; Aggregate Business Reaches All-Time High​

Karnataka Bank Limited announced strong financial results for the quarter ended June 30, 2026, following the approval of the bank's performance by its Board of Directors. The institution recorded a record quarterly Net Profit of Rs 418.95 crores and achieved an all-time high in Aggregate Business amounting to Rs 1,97,006.62 crores.

The results reflect sustainable growth and prudent financial management practices across the bank's operations. Total Deposits stood at Rs 1,10,396.41 crores as of June 30, 2026, registering a YoY increase of 6.93% from Rs 1,03,242.17 crores recorded on June 30, 2025. Gross Advances reached Rs 86,610.21 crores, marking a significant YoY growth of 16.62%, up from the previous quarter's total of Rs 74,267.02 crores.

The bank saw substantial improvement in its profitability metrics:

Asset Quality and Efficiency Improvements​

The bank demonstrated marked improvements in asset quality metrics. Gross NonPerforming Assets (GNPA) percentage improved by 88 basis points (bps), settling at 2.58%, down from 3.46% as reported in June 2025. Similarly, the Net NPA percentage reduced by 57 bps to 0.87%, compared to 1.44% of the previous year.

The bank also strengthened its capital position, raising its Capital to Risk-weighted Assets Ratio (CRAR) from 20.46% as of June 30, 2025, to 21.10% as of June 30, 2026. The Provision Coverage Ratio (PCR), including Two Year Loans, improved significantly to 67.03%, up from 59.18% in June 2025.

Key performance highlights across major financial parameters are detailed below:

Management Commentary and Strategic Outlook​

Shri Raghavendra S. Bhat, Managing Director and CEO, stated that the achievement of an all-time high aggregate business and net profit reflects the bank's unwavering commitment to management and customer-centric banking. He attributed the progress to the continued trust of customers, shareholders, and the efforts of the employees, along with the guidance of the Chairman and the Board.

He emphasized the significant improvements in asset quality and noted that the digital transformation journey is progressing rapidly. "By embracing digital innovation and leveraging data driven insights, we are simplifying customer experiences, enhancing operational efficiency, and building a future ready bank," he said.

Smt. Biji S. S., Executive Director, added that the continuous progress demonstrates disciplined execution and strong operational framework. She highlighted the focus on advancing digital transformation to simplify processes and enhance service delivery across all channels. "Our customer first approach remains at the heart of everything we do, as we strive to deliver personalized solutions and foster enduring relationships," she said.

The bank confirmed its commitment to sustainable growth and operational excellence, reinforcing its dedication to long-term value creation for all stakeholders.

KTKBANK Stock Price Movement​

The Karnataka Bank Limited shares today gained by 0.74% to close at ₹279, following the stock rising to ₹283 during trading hours. The equity traded with a volume of 3.16 million shares.