Karnataka Bank Ltd delivered exceptional financial results for Q4 2025-26, with net profit surging 61.74% to ₹408.19 crore compared to ₹252.37 crore in the corresponding period of the previous fiscal year. According to reports from The Hindu BusinessLine, the bank achieved an all-time high annual net profit of ₹1,310.50 crore for FY26, representing a 3% growth from ₹1,272.37 crore in 2024-25. The board of directors approved the audited annual financial results for the quarter and full year ended March 31, 2026, and proposed a dividend of 50% for approval in the forthcoming Annual General Meeting.
The bank demonstrated significant improvement in asset quality metrics during Q4 2025-26. As reported by The Hindu BusinessLine, gross NPAs declined by 30 basis points from 3.08% in Q4 2024-25 to 2.78% in Q4 2025-26, while net NPAs improved by 33 basis points from 1.31% to 0.98%. Managing Director and CEO Raghavendra S Bhat attributed this improvement to sound lending practices, effective recovery mechanisms, and sustained monitoring of the loan portfolio. The bank's strategic focus remains on building a high-quality and diversified credit portfolio while maintaining strong governance standards.
Karnataka Bank's revenue streams showed mixed performance during the quarter. According to the financial results, net interest income increased to ₹842.95 crore in Q4 2025-26 from ₹780.68 crore in the corresponding period of the previous fiscal. However, other income declined to ₹398.86 crore in Q4 2025-26 from ₹428.23 crore in Q4 2024-25. The net interest margin improved to 3.07% in Q4 2025-26 against 2.98% in Q4 2024-25. The bank achieved an all-time high aggregate business turnover of ₹1,92,118.67 crore in FY26, with gross advances standing at ₹83,339.92 crore in 2025-26 compared to ₹77,958.72 crore in 2024-25.
The bank demonstrated strong deposit mobilization capabilities with CASA deposits growing by 9.85% from ₹33,281 crore in Q4 2024-25 to ₹36,559.66 crore in Q4 2025-26. As reported by The Hindu BusinessLine, this growth in low-cost deposits supports the bank's strategy to enhance operational efficiency. Bhat emphasized the bank's strategic focus on building a high-quality and diversified credit portfolio, improving operational efficiency through technology and analytics-driven initiatives, and enhancing digital capabilities to deliver seamless customer experience. The bank aims to deepen its presence across key markets by leveraging its distribution network and strengthening customer engagement while maintaining strong governance standards.
