Karnataka Bank recorded an all time high net profit of ₹1,310.50 crore during 2025-26 as against ₹1,272.37 crore in 2024-25, recording a growth of 3%.

The bank achieved an all-time high aggregate business turnover of ₹1,92,118.67 crore in the last financial year.

The board of directors approved the audited annual financial results for the quarter and full year which ended on March 31, 2026 at a meeting here on Tuesday.

The board proposed a dividend of 50% for approval in the forthcoming annual general meeting of the bank, a release said.

Fourth quarter result

The bank recorded a net profit of ₹408.19 crore during the fourth quarter of 2025-26 as against a net profit of ₹252.37 crore in the corresponding period of the previous fiscal, registering a growth of 61.74%.

Raghavendra S Bhat, managing director and CEO, said the all-time high annual net profit reflected the strength of its resilient business model, focused growth strategy, and continued emphasis on operational efficiency.

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% in Q4 2024-25 to 2.78% in Q4 2025-26, and the net NPA of the bank declined by 33 basis points from 1.31% to 0.98%.

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% in Q4 2025-26 as against 2.98 % in Q4 2024-25.

He said the bank achieving an all-time high aggregate business turnover in the last financial year underlined the strong momentum in both deposits and advances and reaffirmed 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% from ₹33,281 crore in Q4 2024-25 to ₹36,559.66 crore in Q4 2025-26.

Mr. 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.