Karnataka Bank announced a net profit of ₹1,310.50 crore for the financial year ended March 31, 2026, marking a 3% year-on-year growth. This performance reflects the bank’s successful strategies in strengthening its balance sheet, improving asset quality, and expanding its retail, agriculture, and MSME franchises.
Karnataka Bank Reports Strong Financial Performance for FY 2025-26
Karnataka Bank has announced its financial results for the year ended March 31, 2026, reporting a net profit of ₹1,310.50 crore. This represents a 3% year-on-year growth compared to the previous financial year. The bank’s aggregate business also saw a significant increase, reaching ₹1,92,118.67 crore.
Key Financial Highlights
The bank’s performance was driven by a combination of factors, including a robust credit growth of 6.90% in gross advances and a healthy deposit growth of 3.79%. The CASA ratio improved to 33.61%, highlighting the bank’s focus on low-cost deposits. Asset quality also saw marked improvement with Gross NPAs declining to 2.78% from 3.08% and Net NPAs reducing to 0.98% from 1.31%. The Capital Adequacy Ratio (CRAR) remained strong at 20.07%.
The bank’s strategic initiatives, including the expansion of its digital capabilities, focused product offerings, and strengthened distribution reach, have contributed to improved margins, profitability, and key return ratios. These initiatives aim to enhance asset quality, rationalize funding costs, and maintain the bank’s competitive edge while deepening financial inclusion.
Source: BSE
