Karnataka Bank has announced a historic milestone, achieving an all-time high aggregate business of ₹2,07,132.41 crore for the quarter ended September 30, 2026. Net profit also reached a record ₹435.89 crore, marking a 37% year-on-year improvement. The bank highlighted substantial growth in deposits, advances, and a significant improvement in asset quality with reduced GNPA and NNPA ratios.
Karnataka Bank Reports Record Financial Performance
Karnataka Bank has announced achieving an all-time high in its aggregate business, reaching ₹2,07,132.41 crore for the quarter ending September 30, 2026. This landmark figure underscores the bank’s sustained growth trajectory and strong market presence.
Record Net Profit and Growth Drivers
In parallel, the bank recorded a net profit of ₹435.89 crore for the same quarter, representing a robust 37% year-on-year increase compared to the previous year. This performance also led to a higher Return on Equity (ROE), improving from 10.14% in September 2025 to 12.51% in September 2026.
Key Financial Highlights for Q2 FY27
Several key financial metrics demonstrated significant year-on-year growth:
- Aggregate Deposits: Increased by 12% to ₹1,15,117.15 crore as of September 30, 2026.
- Gross Advances: Grew by 25% to ₹92,015.26 crore.
- Net Interest Margin (NIM): Improved to 3.17% from 2.72% in the previous year.
Improved Asset Quality
The bank also reported a significant strengthening of its asset quality:
- Gross Non-Performing Assets (GNPA): Reduced by 106 basis points to 2.27% from 3.33% in September 2025.
- Net Non-Performing Assets (NNPA): Declined by 61 basis points to 0.74% from 1.35%.
- Provision Coverage Ratio (PCR): Improved to 68.05% from 60.22%.
Management Commentary
Shri Raghavendra S. Bhat, Managing Director & CEO, highlighted the bank’s dedication to steady growth, sound fiscal oversight, and a customer-first approach. He also noted the robust 19% YoY expansion in the RAM (Retail, Agriculture, and MSME) segment. Smt. Biji S. S., Executive Director, emphasized the bank’s ongoing digital evolution, commitment to customer engagement, and capacity building for its employees.
Source: BSE
