Karnataka Bank announced its financial results for the quarter ending December 31, 2025 (Q3 FY26). The bank achieved an Aggregate Business of ₹1,81,394.37 crore, reflecting a 3% Quarter-on-Quarter (QoQ) increase. Net Profit stood at ₹290.79 crore for the quarter. Key areas of focus included a 4.9% QoQ growth in Gross Advances and improved asset quality metrics across the board.
Q3 FY26 Financial Highlights of Karnataka Bank
Karnataka Bank has reported steady progress for the third quarter of the financial year 2025-2026, concluding on December 31, 2025. The bank’s Aggregate Business reached ₹1,81,394.37 crore, marking a 3% QoQ increase over the preceding quarter’s figure of ₹1,76,461.34 crore.
Core Business Performance
The Board of Directors approved the financial results for the quarter and nine months ended December 31, 2025. Key performance indicators for the quarter are:
- Gross Advances: Stood at ₹77,282.85 crores, showing a QoQ growth of 4.9%.
- Aggregate Deposits: Increased to ₹1,04,111.52 crores, recording a QoQ growth of 1.3%.
- Net Profit: Recorded at ₹290.79 crore for Q3 FY26, compared to ₹283.60 crore in the corresponding quarter last year (Q3 FY25).
Asset Quality Improvement
Asset quality showed positive momentum during the quarter. The Gross Non-Performing Assets (GNPA) ratio declined to 3.32% as of December 31, 2025, down from 3.33% on September 30, 2025. Similarly, the Net NPA ratio improved to 1.31% (from 1.35%). The Provision Coverage Ratio (PCR) (excluding TWO) also strengthened, moving to 61.23% from 60.22%.
The bank’s Capital Adequacy Ratio stood at 19.94% as of the reporting date, slightly lower than the 20.84% reported in September 2025. In adherence to RBI guidelines, the Liquidity Coverage Ratio (LCR) was computed at 186.84%.
Strategic Outlook from Leadership
Shri Raghavendra S. Bhat, Managing Director & CEO, stated that the bank recorded a 5% QoQ growth in Advances. He emphasized the continued focus on the RAM (Retail, Agri, and MSME) segments, noting that pursuing a strong base in low-cost deposits is yielding benefits. The bank is actively leveraging digital transformation and embedding analytical tools to enhance customer experience and operational efficiency.
Performance Metrics Summary (Quarter Ended 31-12-2025)
| Parameter | Value (₹ Crore) | QoQ Variation |
|---|---|---|
| Aggregate Business (Gross) | 1,81,394.37 | 1.97% |
| Net Profit | 290.79 | 2.54% |
| Gross NPA [%] | 3.32 | +21 bps |
| CASA [%] | 31.53 | +124 bps |
Source: BSE
