Karnataka Bank has announced a historic performance for the fiscal year 2025-26, reporting an all-time high annual net profit of ₹1,310.50 crores. The bank also achieved a record aggregate business of ₹1,92,118.67 crores. Driven by improved operational efficiency, higher interest margins, and enhanced asset quality, the board has proposed a dividend of 50% for shareholders.
Record-Breaking Financial Results
Karnataka Bank has concluded FY 2025-26 with stellar financial metrics, marking a significant milestone in its growth trajectory. The bank reported an annual net profit of ₹1,310.50 crores, compared to ₹1,272.37 crores in the previous year. For the final quarter (Q4, Jan-Mar 2026), the bank recorded a net profit of ₹408.19 crores, reflecting a strong 40% growth compared to the previous quarter.
Business Growth and Margin Expansion
The bank’s aggregate business reached an all-time high of ₹1,92,118.67 crores. This growth was supported by a 4% QoQ increase in aggregate deposits and an 8% QoQ growth in gross advances. Notably, the bank’s Net Interest Margin (NIM) improved to 3.07% for the quarter ended March 31, 2026, up from 2.92% in the previous quarter, indicating better interest yield management.
Asset Quality Improvements
Asset quality showed marked improvement throughout the fiscal year. The Gross Non-Performing Asset (GNPA) ratio declined by 54 bps to 2.78% as of March 2026, down from 3.32% in December 2025. Similarly, Net NPA levels dropped by 33 bps to 0.98%. The Provision Coverage Ratio (PCR) also strengthened to 83.54%, reflecting a more robust risk management framework.
Strategic Outlook
Shri Raghavendra S. Bhat, Managing Director & CEO, attributed the performance to the bank’s resilient business model and focused growth strategy. Moving forward, the bank intends to leverage technology-driven analytics to improve operational efficiency, enhance its portfolio of low-cost deposits, and deepen its presence in key markets. The commitment remains to drive sustainable growth through a customer-centric product suite and prudent governance standards.
Source: BSE
