Aggregate business crosses ₹1.92 lakh crore mark in FY 2025-26
Mangaluru: Karnataka Bank has reported its highest-ever annual net profit of ₹1,310.50 crore for the financial year 2025-26, reflecting strong business growth, improved asset quality, and enhanced operational efficiency.
The Board of Directors, during a meeting held at the Bank’s headquarters in Mangaluru, approved the audited financial results for the quarter and full year ended March 31, 2026, and recommended a dividend of 50 percent, subject to approval at the forthcoming Annual General Meeting.
Record growth in business turnover
The Bank’s aggregate business reached an all-time high of ₹1,92,118.67 crore during FY 2025-26.
Key financial highlights:
- Aggregate Deposits: ₹1,08,778.75 crore
- Gross Advances: ₹83,339.92 crore
- CASA Deposits: ₹36,559.66 crore
- CASA Ratio: 33.61%
The Bank recorded a 4 percent quarter-on-quarter growth in deposits and an 8 percent growth in gross advances during the January–March 2026 quarter.
Strong quarterly performance
Karnataka Bank reported a net profit of ₹408.19 crore for the quarter ended March 31, 2026, compared to ₹290.79 crore in the previous quarter, registering a 40 percent QoQ increase.
The full-year net profit improved by 3 percent year-on-year from ₹1,272.37 crore in FY 2024-25 to ₹1,310.50 crore in FY 2025-26.
Improvement in profitability indicators
The Bank also witnessed improvement in profitability ratios:
- Net Interest Margin (NIM): Increased from 2.92% to 3.07%
- Return on Assets (ROA): Improved from 0.92% to 1.27%
- Return on Equity (ROE): Rose from 9.06% to 12.69%
Significant improvement in asset quality
The Bank’s asset quality improved considerably during FY 2025-26.
Asset quality indicators:
- Gross NPA: Reduced to 2.78% from 3.32%
- Net NPA: Reduced to 0.98% from 1.31%
- Provision Coverage Ratio (PCR): Improved to 65.39% from 61.23%
The improvement was attributed to prudent lending practices, efficient recovery mechanisms, and continuous monitoring of the loan portfolio.
MD & CEO highlights growth strategy
Announcing the results, Shri Raghavendra S. Bhat, Managing Director and CEO of Karnataka Bank, said the Bank’s record performance reflected the strength of its resilient business model, focused growth strategy, and emphasis on operational efficiency.
He stated that the Bank would continue focusing on:
- Building a high-quality and diversified credit portfolio
- Improving operational efficiency through technology and analytics
- Enhancing low-cost deposits
- Strengthening digital banking capabilities
- Expanding customer engagement and distribution network
- Maintaining strong governance and prudent risk management
Conclusion
Karnataka Bank’s record-breaking performance in FY 2025-26 reinforces its position as one of the leading private sector banks in the country, with strong growth in business, profitability, and asset quality.