Karnataka Bank has announced its financial results for the second quarter and half-year ended September 30, 2026. Profit After Tax (PAT) for the quarter grew by 4.04% to ₹435.89 crore compared to the same period last year. Net Interest Income also saw a healthy increase of 34.93% year-on-year. The bank also highlighted improvements in asset quality, with GNPA at 2.27%.
Karnataka Bank Reports Q2 FY27 Financials
Karnataka Bank has released its unaudited, reviewed financial results for the quarter and half-year ended September 30, 2026. The bank reported a Profit After Tax (PAT) of ₹435.89 crore for the second quarter of FY27, marking a 4.04% increase compared to ₹319.12 crore in Q2 FY26. For the half-year ended September 30, 2026 (H1 FY27), PAT stood at ₹854.84 crore (₹435.89 crore in Q2FY27 + ₹418.95 crore in Q1FY27), up from ₹739.08 crore in H1 FY26.
Key Financial Highlights
Profitability Metrics
Net Interest Income (NII) for Q2 FY27 was ₹982.44 crore, showing a substantial 34.93% year-on-year growth from ₹728.12 crore in Q2 FY26. Total Income for the quarter reached ₹1,272.53 crore, an increase of 18.76% compared to ₹1,071.49 crore in Q2 FY26.
Operating Profit for the quarter was ₹602.22 crore, up by 36.86% from ₹440.04 crore in the corresponding quarter of the previous year.
Balance Sheet Growth
As of September 30, 2026, the bank’s Total Deposits stood at ₹1,15,117.15 crore, reflecting a 4.28% quarter-on-quarter growth from ₹1,10,396.41 crore as of June 30, 2026. Advances grew by 6.44% QoQ to ₹90,581.25 crore.
Asset Quality
The Gross Non-Performing Assets (GNPA) ratio improved to 2.27% as of September 30, 2026, down from 2.58% in the previous quarter (Q1 FY27) and 3.33% in the year-ago period (Q2 FY26).
Net Non-Performing Assets (NNPA) also saw an improvement, standing at 0.74% as of Q2 FY27, compared to 0.87% in Q1 FY27 and 1.35% in Q2 FY26.
Key Financial Ratios
The bank’s Return on Assets (ROA) was 1.26% for Q2 FY27, and Return on Equity (ROE) was 12.51%.
Net Interest Margin (NIM) for the quarter stood at 3.17%.
Source: BSE
