Karnataka Bank Reports Record Annual Net Profit of Rs 1,310.50 Crores for FY 2025-26
Karnataka Bank Limited announced a record annual net profit of Rs 1,310.50 crore for the financial year 2025-26. The bank also reported an all-time high Aggregate Business of Rs 1,92,118.67 crores for the full year ended March 31, 2026.During a meeting in Mangaluru, the Board of Directors approved the audited annual financial results for the quarter and the full year ended March 31, 2026. Furthermore, the Board proposed a dividend of 50% for approval at the forthcoming Annual General Meeting.
The bank's robust financial performance was highlighted by the net profit for the quarter ending March 31, 2026, which stood at Rs 408.19 crores. This marked a 40% quarter over quarter improvement compared to Rs 290.79 crores recorded for the quarter ended December 31, 2025.
Key Financial Performance Metrics
The full-year net profit for FY2025-26 was Rs 1,310.50 crore, showing a 3.00% Year over Year (YoY) improvement from Rs 1,272.37 crore recorded in FY24-25.Operational metrics for the period ending March 31, 2026, show significant growth:
- Aggregate Deposits: Stood at Rs 1,08,778.75 crores, registering a Quarter over Quarter (QoQ) growth of 4% from Rs 1,04,111.52 crores as of December 31, 2025.
- CASA Deposits: Grew by 9.85% QoQ to Rs 36,559.66 crores, up from Rs 32,828.70 crores as of December 31, 2025.
- Gross Advances: Reached Rs 83,339.92 crores, showing a QoQ growth of 8% compared to Rs 77,282.85 crores on December 31, 2025.
- Net Interest Margin (NIM): Improved to 3.07% for the quarter ended March 31, 2026, up 15 basis points (bps) QoQ from 2.92% recorded for the quarter ended December 31, 2025.
Asset Quality and Future Focus
The bank reported significant improvements in asset quality throughout FY25-26. The Gross Non-Performing Assets (GNPA) percentage declined by 54 bps to 2.78% from 3.32% as of December 2025. Similarly, the Net Non-Performing Assets (NNPA) percentage decreased by 33 bps to 0.98% from 1.31% compared to December 2025. The Provision Coverage Ratio (PCR) (excluding TWO) improved to 65.39% in March 2026, up from 61.23% in December 2025.According to the bank's Managing Director & CEO, the all-time high annual net profit reflects the strength of the bank's resilient business model and focused growth strategy. The bank also reported achieving an all-time high aggregate business turnover of Rs 1,92,118.67 crores.
The management stated that the strategic focus will remain on building a high-quality and diversified credit portfolio, improving operational efficiency through technology and analytics-driven initiatives, and enhancing digital capabilities to deliver a seamless customer experience.
Performance Highlights (Rupees in Crores)
The comprehensive performance data for the bank across key parameters is provided below:| Parameters | FY26 | FY25 | Variation (%) (FY26 to FY25) | Q4 (Mar '26) | Q4 (Mar '25) | Variation (%) (Q4-FY26 to Q4-FY25) | Q3 | Variation (%) (Q4-FY26 to Q3-FY26) |
|---|---|---|---|---|---|---|---|---|
| Aggregate Business (Gross) | 1,92,118.67 | 1,82,766.21 | 5.12% | 1,92,118.67 | 1,82,766.21 | 5.12% | 1,81,394.37 | 5.91% |
| Gross Advances | 83,339.92 | 77,958.72 | 6.90% | 83,339.92 | 77,958.72 | 6.90% | 77,282.85 | 7.84% |
| Total Deposits | 1,08,778.75 | 1,04,807.49 | 3.79% | 1,08,778.75 | 1,04,807.49 | 3.79% | 1,04,111.52 | 4.48% |
| CASA | 36,559.66 | 33,281.00 | 9.85% | 36,559.66 | 33,281.00 | 9.85% | 32,828.70 | 11.36% |
| CASA Ratio (%) | 33.61 | 31.75 | 186 bps | 33.61 | 31.75 | 186 bps | 31.53 | 208 bps |
| Operating Profit | 1,974.17 | 1,827.04 | 8.05% | 615.04 | 375.02 | 64.00% | 451.80 | 36.13% |
| Net Profit | 1,310.50 | 1,272.37 | 3.00% | 408.19 | 252.37 | 61.74% | 290.79 | 40.37% |
| Net Interest Income | 3,118.73 | 3,310.38 | -5.79% | 842.95 | 780.68 | 7.98% | 792.06 | 6.43% |
| Net Interest Margin (%) | 2.88 | 3.19 | -31 bps | 3.07 | 2.98 | 9 bps | 2.92 | 15 bps |
| Return on Assets (%) | 1.05 | 1.05 | 0 bps | 1.27 | 0.81 | 46 bps | 0.92 | 35 bps |
| GrossNPA (%) | 2.78 | 3.08 | -30 bps | 2.78 | 3.08 | -30 bps | 3.32 | -54 bps |
| NetNPA (%) | 0.98 | 1.31 | -33 bps | 0.98 | 1.31 | -33 bps | 1.31 | ~33 bps |
| PCR (%) | 83.54 | 81.42 | 212 bps | 83.54 | 81.42 | 212 bps | 80.90 | 264 bps |
KTKBANK Stock Price Movement
On Tuesday, shares of The Karnataka Bank Limited rallied by 2.20% to settle at ₹247.75. The equity saw significant volume, with trading reaching 2.63 million shares throughout the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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