Karnataka Bank shares dropped nearly 6% on Thursday following the release of the bank's provisional business update for the January-March quarter of financial year 2026 (Q4 FY26). According to reports from The Economic Times, the shares have declined nearly 3% in the past one week, but gained over 8% in the past one month and are up over 6% in 2026 so far. The company currently has a market capitalisation of more than ₹8,300 crore.
The bank reported CASA (current account-savings account) deposits at ₹36,621 crore for the fourth quarter of FY26, marking a 10% year-on-year rise from ₹33,281 crore CASA deposits reported for Q3 FY25. As reported by The Economic Times, this also represents a 11.5% quarter-on-quarter rise from ₹32.829 crore in Q2 FY26. The company's total deposits grew 3.8% YoY to nearly ₹1.09 lakh crore in the quarter under review, compared to ₹1.05 crore in the corresponding quarter of the previous financial year. This also marks a 4.5% rise from the ₹1.04 lakh crore total deposits reported in the previous quarter.
Karnataka Bank's share of CASA to total deposits improved to 33.65% in the fourth quarter of FY26, according to The Economic Times, up from 31.75% in the same quarter of the previous year and 31.53% in the third quarter of the same financial year. This improvement in the CASA ratio indicates a better quality of deposits and lower cost of funds for the bank.
The bank's total advances grew 6.9% YoY and 7.8% QoQ to ₹83,337 crore, as reported by The Economic Times. However, these are provisional numbers, and the audited financial statements will be released soon as the earnings season kicks off. The growth in advances indicates the bank's ability to expand its lending portfolio and support business growth.
The drop in share price comes amid overall market weakness, with Sensex declining around 1,500 points and Nifty dropping below 22,250 on Thursday morning, as reported by The Economic Times. This came as US President Donald Trump's latest comments spooked investors about the war between Iran and US escalating further and rattling global markets. The macroeconomic conditions that could affect banks also impacted investor sentiment, contributing to the market decline despite the bank's positive business metrics. However, the broader market showed resilience with BSE 150 MidCap Index adding 2.25% and BSE 250 SmallCap Index jumping 3.44%.
