DBT Bureau
Pune, 19 May 2026
Karnataka Bank has reported a record annual net profit of ₹1,310.50 crore for FY 2025-26.
Further, the Bank has also recorded significant progress in the full year FY26 financials with an all-time high Aggregate Business of ₹1,92,118.67 crore.
During a meeting held in Mangaluru today, 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’s Aggregate Deposits stood at ₹1,08,778.75 crore as on March 31, 2026, registering a QoQ growth of 4% from ₹ 1,04,111.52 crore as on December 31, 2025, while the Bank’s CASA Deposits grew by 11% QoQ to ₹36,559.66 crore as on March 31, 2026, from ₹32,828.70 crore as on December 31, 2025, registering a CASA Ratio of 33.61% as on March 31, 2026, as against 31.53% as on December 31, 2025. Gross Advances stood at ₹83,339.92 crore, registering QoQ growth of 8%, as against ₹ 77,282.85 crore as on December 31, 2025. Bank’s NIMs improved from 2.92% for the quarter ended December 31, 2025, to 3.07% for the quarter ended March 31, 2026, thereby registering a 15 bps QoQ increase.
The Bank’s Net Profit for the quarter ended March 31, 2026, was ₹408.19 crore as against ₹290.79 crore for the quarter ended December 31, 2025, which is a 40% QoQ improvement. The full-year net profit for FY2025-26 was ₹1,310.50 crore as against ₹1,272.37 crore for FY2024-25, recording a 3% YoY improvement. Consequently, the Bank’s ROA and ROE improved from 0.92% and 9.06% for the quarter ended December 31, 2025, to 1.27% and 12.69% for the quarter ended March 31, 2026.
The asset quality improved significantly during FY25-26, with GNPA declining by 54 bps to 2.78% from 3.32% compared to December 2025. Similarly, the NNPA declined by 33 bps to 0.98% from 1.31% compared to December 2025. The PCR (excluding TWO) improved to 65.39% in March 2026 from 61.23% in December 2025.
Announcing the results at the Bank’s headquarters in Mangaluru, Raghavendra S. Bhat, Managing Director & CEO, 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.
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. Further, the Bank has achieved an all-time high aggregate business turnover of ₹1,92,118.67 crore, underlining the strong momentum in both deposits and advances and reaffirming the confidence reposed by customers and stakeholders.
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.
Further, 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.”
