Karnataka Bank Ltd recorded a net profit of ₹408.19 crore during the fourth quarter of 2025-26 against a net profit of ₹252.37 crore in the corresponding period of the previous fiscal, registering a growth of 61.74 per cent.

The bank recorded a net profit of ₹1,310.50 crore during 2025-26 against ₹1,272.37 crore in 2024-25, recording a growth of 3 per cent.

During a meeting held in Mangaluru on Tuesday, the board of directors of the bank approved the audited annual financial results for the quarter and full year ended March 31, 2026, and proposed a dividend of 50 per cent for approval in the forthcoming Annual General Meeting.

Raghavendra S Bhat, Managing Director and CEO of the bank, said the bank has achieved an all-time high annual net profit of ₹1,310.50 crore, reflecting the strength of its resilient business model, focused growth strategy, and continued emphasis on operational efficiency.

Asset quality

He said the asset quality of the bank has also improved significantly, supported by sound lending practices, effective recovery mechanisms, and sustained monitoring of the loan portfolio.

The gross non-performing assets (NPAs) of the bank declined by 30 basis points from 3.08 per cent in Q4 2024-25 to 2.78 per cent in Q4 2025-26, and the net NPA of the bank declined by 33 basis points from 1.31 per cent to 0.98 per cent.

NII

The net interest income (NII) of the bank increased to ₹842.95 crore in the fourth quarter of 2025-26 from ₹780.68 crore in the corresponding period of the previous fiscal. However, the other income of the bank declined to ₹398.86 crore in Q4 2025-26 from ₹428.23 crore in Q4 2024-25.

The net interest margin (NIM) of the bank stood at 3.07 per cent in Q4 2025-26 against 2.98 per cent in Q4 2024-25.

Business

He said the bank has achieved an all-time high aggregate business turnover of ₹1,92,118.67 crore in FYb26, underlining the strong momentum in both deposits and advances and reaffirming the confidence reposed by customers and stakeholders.

The gross advances of the bank stood at ₹83,339.92 crore in 2025-26 (₹77,958.72 crore in 2024-25). The CASA (current account savings account) deposits of the bank grew by 9.85 per cent from ₹33,281 crore in Q4 2024-25 to ₹36,559.66 crore in Q4 2025-26.

Outlook

Bhat said the strategic focus will also remain on building a high-quality and diversified credit portfolio, improving operational efficiency through technology and analytics-driven initiatives, enhancement of low-cost deposits and enhancing digital capabilities to deliver a seamless customer experience. The bank aims to deepen its presence across key markets by leveraging its distribution network and strengthening customer engagement.

He said the bank will continue to emphasize cross-sell and up-sell opportunities through a comprehensive customer-centric product suite, while maintaining strong governance standards and a prudent risk management framework to ensure sustainable and profitable growth.

Published on May 19, 2026