Karnataka Bank reported a record annual net profit of Rs 13.105 billion (Rs 1,310.50 crore) for the fiscal year 2025-26, marking a three per cent increase from Rs 12.7237 billion (Rs 1,272.37 crore) in the previous year. The board approved audited results and proposed a 50 per cent dividend for approval at the forthcoming annual general meeting. Aggregate business reached Rs 1.92 trillion (Rs 1,92,118.67 crore), an all-time high that reflected momentum across deposits and advances.

Total deposits stood at Rs 1,08,778.75 crore (approximately Rs 1.09 tn) as on 31 March 2026, registering quarter-on-quarter growth of four per cent from Rs 1,04,111.52 crore on 31 December 2025. CASA deposits rose to Rs 36,559.66 crore, lifting the CASA ratio to 33.61 per cent from 31.53 per cent in December 2025. Gross advances increased to Rs 83,339.92 crore, up eight per cent quarter on quarter.

Net interest margin improved to 3.07 per cent for the quarter ended 31 March 2026 from 2.92 per cent in the previous quarter, a rise of 15 basis points. The bank reported quarterly net profit of Rs 408.19 crore versus Rs 290.79 crore in the prior quarter, reflecting a 40 per cent quarter-on-quarter improvement. For the full year, operating profit rose year on year while net interest income declined relative to the prior year.

Asset quality strengthened with gross non-performing assets at 2.78 per cent and net non-performing assets at 0.98 per cent as of 31 March 2026, supported by a provision coverage ratio of 83.54 per cent. Return on assets and return on equity improved to 1.27 per cent and 12.69 per cent respectively for the quarter ended 31 March 2026. Management indicated that recoveries, prudent lending and sustained monitoring of the loan portfolio underpinned the improvement.

The board said strategic priorities will include enhancement of low-cost deposits, investment in digital capability and analytics-driven efficiency, and emphasis on cross-sell initiatives to deepen customer engagement. These measures are intended to support sustainable and profitable growth while maintaining governance and risk management standards.