Karnataka Bank has announced its unaudited Q1 FY27 financial results, with Profit After Tax (PAT) soaring by 43% year-on-year to ₹418.95 crore. This strong performance was driven by robust growth across various banking segments, including aggregate business expansion and improved asset quality. The bank also highlighted strategic focus on retail and mid-corporate growth, alongside prudent risk management.
Karnataka Bank Reports Strong Q1 FY27 Performance
Karnataka Bank has unveiled its financial results for the first quarter of FY27 (ended June 30, 2026), reporting a significant year-on-year increase in profitability. Profit After Tax (PAT) for the quarter surged by 43% to ₹418.95 crore, compared to ₹292.40 crore in the same quarter of the previous financial year (Q1 FY26). This marks a 3% increase from the previous quarter (Q4 FY26), which stood at ₹408.19 crore.
Key Financial Highlights
The bank’s aggregate business reached an all-time high of ₹1,97,007 crore as of June 30, 2026, representing an 11% year-on-year growth from ₹1,77,509 crore in June 2025. Gross Advances stood at ₹86,610 crore, up 17% year-on-year from ₹74,267 crore in June 2025. The Net Interest Income (NII) also showed strong growth, increasing by 11% quarter-on-quarter to ₹938.29 crore and by 24% year-on-year to ₹755.60 crore.
Asset Quality and Strategic Focus
Karnataka Bank demonstrated sustained improvement in asset quality. Gross NPA stood at 2.58% as of June 30, 2026, a reduction of 88 basis points from 3.46% in June 2025. Net NPA improved to 0.87%, down 57 basis points year-on-year. The bank continues to focus on accelerating retail expansion and stabilizing its corporate portfolio by prioritizing high-quality, better-yielding assets, alongside a strategy to reduce low-yield corporate exposure.
Deposit Growth and Future Outlook
Aggregate deposits grew by 7% year-on-year to ₹1,10,396 crore as of June 30, 2026. The bank is actively working to reduce its reliance on high-cost bulk deposits, shifting towards granular retail deposits. Looking ahead, the bank maintains a cautious outlook amidst heightened inflationary risks, navigating external dynamics with prudence while closely tracking inflation trajectories.
Source: BSE
