Private sector Karnataka Bank delivered exceptional fourth quarter results with net profit jumping 62% to ₹408.19 crore compared to ₹252 crore in the corresponding period last year, according to the latest financial results announced for the quarter and year ended March 31, 2026. The bank's pre-provision operating profit surged 64% to ₹615.04 crore against ₹375 crore in the year-ago period, demonstrating robust operational efficiency. However, provisions increased significantly to ₹90 crore from ₹31 crore earlier, reflecting higher credit costs during the quarter. The latest data confirms the strong performance with profit also improving 40% sequentially from ₹290.79 crore reported in the December quarter, while total income for the quarter stood at ₹2,656.18 crore, contributing to an annual total income of ₹10,320.72 crore.
For the full financial year FY26, Karnataka Bank's annual net profit stood at ₹1,310.50 crore compared to ₹1,272 crore in the preceding fiscal year, as reported by the latest financial results. The bank achieved significant improvements in asset quality metrics, with gross non-performing assets declining to 2.78% at the end of March 31 from 3.08% a year prior. Net NPA also improved substantially to 0.98% against 1.31% in the previous year, indicating healthier balance sheet trends and better credit management practices. According to the latest data, Gross NPA ratio improved to 2.78% as of March 31, 2026, while Net NPA ratio closed at 0.98%, showing continued improvement from the previous quarter's levels.
The bank achieved remarkable business expansion with an all-time high aggregate business turnover of ₹1.92 lakh crore for FY26, driven by healthy growth in both deposits and advances, as reported by CNBC TV18. Aggregate deposits stood at ₹1.09 lakh crore as of March 31, 2026, registering 4% quarter-on-quarter growth. CASA deposits grew 11% sequentially to ₹36,559.66 crore, taking the CASA ratio to 33.61% from 31.53% in the previous quarter, indicating improved low-cost funding. Gross advances rose 8% quarter-on-quarter to ₹83,339.92 crore, while net interest margin improved by 15 basis points sequentially to 3.07%, reflecting enhanced profitability. The bank demonstrated disciplined asset management throughout the year.
The bank's board has recommended a final dividend of ₹5 per equity share for shareholders, representing 50% of the face value of ₹10 each per equity share for the financial year ended March 31, 2026, according to the latest financial results. The dividend is subject to approval by the bank's shareholders at the upcoming Annual General Meeting. Managing Director and CEO Raghavendra S. Bhat highlighted that the bank achieved its highest-ever annual net profit of ₹1,310.5 crore during FY26, reflecting resilient business growth, operational efficiency and stronger risk management. Ahead of the earnings announcement, shares of Karnataka Bank closed 2.2% higher at ₹248.20 on the NSE, reflecting positive market sentiment towards the strong quarterly performance.
The bank maintains a robust capital position, reporting a Capital Adequacy Ratio of 20.07% under Basel III standards as of March 31, 2026, reflecting the bank's stability and preparedness for future growth. Looking ahead, the bank remains focused on building a diversified credit portfolio, improving operational efficiency through technology and analytics-led initiatives, and strengthening digital capabilities to enhance customer experience, as reported by CNBC TV18. The bank continues to focus on strengthening its retail and corporate banking segments, with an emphasis on sustainable business practices and enhancing shareholder value. The combination of strong operational performance, improved asset quality, and record business turnover positions Karnataka Bank well for continued growth in the competitive banking sector.
