Karnataka Bank Ltd registered a net profit of ₹435.89 crore in the second quarter of 2026-27. This showed a growth of 36.59 per cent compared to the previous fiscal. Managing Director Raghavendra S Bhat said, "This upward trajectory has been fueled entirely by the enduring trust of our customers."
Karnataka Bank Ltd (KBL) registered a net profit of ₹435.89 crore in the second quarter of 2026-27 against a net profit of ₹319.12 crore in the corresponding period of the previous fiscal, recording a growth of 36.59 per cent.
For the half year ended September 2026, the net profit stood at ₹854.84 crore as against ₹611.52 crore for half year ended September 2025, a growth of 39.79 per cent.
The total income of the bank increased to ₹2793.96 crore in Q2FY27 from ₹2522.55 crore in Q2FY26. The interest income of the bank increased to ₹982.44 crore in Q2FY27 (₹728.12 crore in Q2FY26).
The meeting of the Board of Directors of the bank in Mangaluru on Wednesday approved the financial results for the quarter ended September 30, 2026.
Raghavendra S Bhat, Managing Director and CEO of the bank, said the bank has reached a historic milestone, with its aggregate business climbing to a record ₹2,07,132.41 crore and net profit hitting ₹435.89 crore.
Stating that this performance underscores the bank's deep dedication to steady growth, sound fiscal oversight, and a customer-first approach to banking, he said: "Notably, our RAM (Retail, Agriculture, and MSME) segment expanded by a robust 19 per cent year-on-year, surging from ₹47,958.40 crore on September 30, 2025, to ₹56,968.79 crore by September 30, 2026. This upward trajectory has been fueled entirely by the enduring trust of our customers, the reliance of our shareholders, and the tireless dedication of our workforce."
Driven by disciplined underwriting, robust recovery strategies, and the continuous monitoring of credit portfolios, the bank's asset quality has strengthened remarkably.
This is demonstrated by a year-on-year reduction in gross non-performing assets (NPA) by 106 basis points to 2.27 per cent, while net NPA lowered by 61 basis points to 0.74 per cent, he said.
"Looking ahead, our priority remains to optimise our core capabilities, grow our footprint ethically, and deliver enduring worth to our stakeholders. Guided by a distinct strategic framework, focused implementation, and a steadfast dedication to reliability, progress, and service quality, we are poised to carry forward this expansion and solidify Karnataka Bank's standing as a dependable financial partner," Bhat said.
Bank's aggregate deposits stood at ₹1.15 lakh crore as on September 30, 2026, registering a year-on-year growth of 12 per cent from ₹1.02 lakh crore as on September 30, 2025, while retail term deposits was ₹72,197.32 crore as on September 30, 2026 as against ₹65,531.80 crore, with a 10 per cent year-on-year increase from September 30, 2025.
The CASA (current account savings account) ratio of the bank to increased to 31.80 per cent in Q2 2026-27 from 31.01 per cent in Q2 2025-26.
The gross advances of the bank stood at ₹92,015.26 crore registering year-on-year growth of 25 per cent as against ₹73,644.14 crore as on September 30, 2025.
The net interest margin of the bank improved from 2.72 per cent for the quarter ended September 30, 2025, to 3.17 per cent for the quarter ended September 30, 2026, registering a 45 basis points year-on-year increase.
Biji SS, Executive Director of the bank, said: "Moving forward, we will maintain our emphasis on balanced expansion, execution proficiency, and progression, while remaining dedicated to top-tier ethical metrics and client care. Supported by the joint dedication of our staff and the enduring reliance of our clientele, we are certain of our ability to supply uniform value and play a significant role in the institutions enduring prosperity."