Media Release

Mangaluru. May 19: Karnataka Bank has reported a record annual net profit of Rs 1,310.50 cr for FY 2025-26. Further, Bank has also recorded significant progress in the full year FY’26 financials with an all-time high aggregate business at Rs 1,92,118.67 crs.

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 and proposed a dividend of 50% for approval in the forthcoming annual general meeting.

Bank’s aggregate deposits stood at Rs 1,08,778.75 crs as on March 31, registering a QoQ growth of 4% from Rs 1,04,111.52 crore as on December 31, 2025, while the Bank’s CASA deposits grew by 11% QoQ to Rs 36,559.66 crore as on March 31, from Rs 32,828.70 crore as on December 31, 2025, registering a CASA ratio 33.61% as on March 31, as against 31.53% as on December 31, 2025.

Gross advances stood at Rs 83,339.92 crore registering QoQ growth of 8%, as against Rs 77,282.85 crore as on December 31, 2025. Bank’s NIMs have improved from 2.92% for the quarter ended December 31, 2025, to 3.07% for the quarter ended March 31, thereby registering a 15 bps QoQ increase.

Bank’s net profit for the quarter ended March 31 was Rs 408.19 crore as against Rs 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 Rs 1,310.50 crore as against Rs 1,272.37 crore for FY24-25, recording a 3% YoY improvement. Consequently, Bank’s ROA and ROE have 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.

The asset quality has improved significantly during FY25-26 with GNPA% declining by 54 bps to 2.78% from 3.32% as compared to December 2025. Similarly, the NNPA% also declined by 33 bps to 0.98% from 1.31% as 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 at Mangaluru, Raghavendra S Bhat, managing director & CEO, said, “The Bank has achieved an all-time high annual net profit of Rs 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 Rs 1,92,118.67 crore, underlining the strong momentum in both deposits and advances and reaffirming the confidence reposed by customers and stakeholder.

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 emphasise 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.”