Karnataka Bank on Wednesday reported a 36.59 per cent year-on-year rise in net profit to Rs 435.89 crore for the second quarter of FY27, compared with Rs 319.12 crore a year earlier, after its board approved the results for the quarter ended September 30, 2026 at a meeting in Mangaluru.

Source: The Hindu BusinessLine

For the half year ended September 2026, net profit stood at Rs 854.84 crore against Rs 611.52 crore a year earlier, a growth of 39.79 per cent. Total income rose to Rs 2,793.96 crore in Q2 FY27 from Rs 2,522.55 crore in Q2 FY26, operating profit rose 36.86 per cent to Rs 602.22 crore and net interest income increased 34.93 per cent to Rs 982.44 crore, with the net interest margin improving 45 basis points to 3.17 per cent.

Source: DSIJ

Rs 435.89 croreQ2 FY27 net profit
Rs 2,07,132.41 croreAggregate business (record)
2.27%Gross NPA ratio
20.36%Capital adequacy (CRAR)

Record business and cleaner books

MD and CEO Raghavendra S Bhat said the bank had reached a historic milestone, with aggregate business climbing to a record Rs 2,07,132.41 crore (yaani Rs 2.07 lakh crore). The retail, agriculture and MSME (RAM) segment expanded 19 per cent year-on-year, from Rs 47,958.40 crore on September 30, 2025 to Rs 56,968.79 crore on September 30, 2026.

Source: The Hindu BusinessLine

Asset quality strengthened, with the gross NPA ratio falling 106 basis points year-on-year to 2.27 per cent from 3.33 per cent and the net NPA ratio falling 61 basis points to 0.74 per cent from 1.35 per cent. The provision coverage ratio stood at 85.78 per cent and the capital adequacy ratio under Basel III at 20.36 per cent.

Source: FilingReader (regulatory filing)

Gross advances rose 24.95 per cent to Rs 92,015.26 crore while deposits increased 11.96 per cent to Rs 1,15,117.15 crore. CASA deposits grew 14.82 per cent to Rs 36,605.40 crore, lifting the CASA ratio to 31.80 per cent, and the cost-to-income ratio improved to 52.68 per cent from 58.93 per cent a year earlier.

Source: DSIJ