Karnataka Bank earnings rose in the quarter ended September 30, 2026, with net profit increasing 36.59% year on year to ₹435.89 crore from ₹319.12 crore.

Key Takeaways

  • First-half net profit reached ₹854.84 crore, up 39.79% from a year earlier.
  • The gross non-performing asset ratio fell to 2.27%, while the net ratio declined to 0.74%.

Karnataka Bank earnings and income

Total income rose to ₹2,793.96 crore in the second quarter of fiscal 2026–27 from ₹2,522.55 crore in the same quarter of the previous fiscal year. The board approved the results on October 28, 2026.

For the half year ended September 2026, net profit increased from ₹611.52 crore a year earlier. The bank’s net interest margin improved to 3.17% for the September quarter from 2.72% a year earlier.

Lending and deposits expanded

Gross advances stood at ₹92,015.26 crore on September 30, up 25% from ₹73,644.14 crore a year earlier. Aggregate deposits rose 12% to ₹1.15 lakh crore from ₹1.02 lakh crore.

Managing Director and CEO Raghavendra S Bhat said lending to the retail, agriculture and MSME segment grew 19% year on year to ₹56,968.79 crore.

Bad-loan ratios declined

The gross non-performing asset ratio fell by 106 basis points year on year to 2.27%, while the net ratio dropped by 61 basis points to 0.74%. Bhat attributed the improvement in asset quality to underwriting, recovery strategies and monitoring of credit portfolios.

The Reserve Bank of India’s NPA rules define when loans are classified as non-performing and provide a framework for calculating gross and net non-performing assets.

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