Karnataka Bank has reported a standalone net profit of Rs 418.95 crore for the quarter ended June 30, 2026, compared with Rs 292.40 crore in the corresponding quarter of the previous financial year, registering a growth of 43.28 per cent.
Raghavendra S Bhat, Managing Director and CEO, Karnataka Bank, said the bank recorded its highest-ever aggregate business of Rs 1,97,006.62 crore during the quarter. He said the performance reflects the bank’s focus on sustainable growth, prudent financial management and customer-centric banking.
The bank’s asset quality improved during the quarter, with Gross Non-Performing Assets (GNPA) declining to 2.58 per cent from 3.46 per cent a year earlier, while Net Non-Performing Assets (NNPA) reduced to 0.87 per cent from 1.44 per cent. The bank attributed the improvement to prudent lending practices, effective recovery efforts and continuous monitoring of its loan portfolio.
Net interest income increased to Rs 938.29 crore from Rs 755.60 crore, while the return on assets improved to 1.29 per cent from 0.97 per cent.
Gross advances grew 17 per cent year-on-year to Rs 86,610.21 crore, while aggregate deposits increased 7 per cent to Rs 1,10,396.41 crore. Retail term deposits rose 6 per cent to Rs 69,410.29 crore, and the CASA ratio improved to 32.42 per cent from 30.84 per cent.
The bank’s Capital to Risk Asset Ratio (CRAR) strengthened to 21.10 per cent from 20.46 per cent a year earlier, reflecting its capital position.
Raghavendra S Bhat said the bank continues to strengthen its digital capabilities to deliver secure and customer-focused banking services while improving operational efficiency through technology and data-driven insights.
Biji SS, Executive Director, Karnataka Bank, said the bank remains focused on strengthening its business through prudent risk management, operational resilience, governance and compliance.
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