About Karnataka Bank Ltd.
Karnataka Bank Ltd. (NSE: KTKBANK) is a leading Indian private sector commercial bank that was incorporated on 18 February 1924 in Mangaluru, Karnataka. It is classified as an “A” Class Scheduled Commercial Bank with a pan-India presence, operating hundreds of branches, ATMs and digital banking channels across 22 states and 2 union territories.
The bank offers a wide range of banking and financial services including retail and corporate banking, deposits, loans (such as home, personal, MSME, agriculture), payment cards, treasury services, foreign exchange, remittances, insurance and investment products.
Headquartered in Mangalore, Karnataka Bank has a long history of steady growth and modernization, embracing digital banking solutions like internet and mobile banking. Its shares are publicly listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India.
Assets & Business Growth
During Q3 FY26, the Bank’s Gross Advances grew by 5% QoQ to ₹77,283 crore from ₹73,644 crore. Retail Advances stood at ₹40,453 crore, registering a 3% QoQ growth, driven by steady traction across segments. Advances in Retail, Agriculture, and MSME segments collectively recorded a 2% QoQ growth.
Total Deposits increased marginally by 1% QoQ to ₹1,04,112 crore. The Bank’s CASA deposits rose 3% QoQ to ₹32,829 crore from ₹31,882 crore, while Retail Term Deposits grew by 1% QoQ.
Profitability
The Bank reported a Net Interest Margin (NIM) of 2.92%, improving by 20 basis points QoQ. However, Profit After Tax (PAT) declined by 8.9% QoQ to ₹291 crore. Return on Assets (ROA) stood at 0.92%, declining by 11 basis points QoQ, while Return on Equity (ROE) was 9.06%, lower by 108 basis points QoQ.
Asset Quality
Asset quality showed improvement during the quarter. Gross NPA (GNPA) stood at 3.32%, improving by 1 basis point QoQ. Net NPA (NNPA) improved by 4 basis points QoQ to 1.31%. The ratio of GNPA and Standard Restructured Advances to Total Advances declined by 16 basis points QoQ to 4.44%.
The Bank’s Standard Restructured Portfolio reduced by 8% QoQ to ₹868 crore from ₹939 crore in Q2 FY26. The Provision Coverage Ratio (PCR), excluding Technical Write-Offs (TWO), improved by 101 basis points QoQ to 61.23%.
Digital & Product Initiatives
The bank expanded digital products, reported growth in mobile and net banking users, and launched new solutions like supply chain finance to cater to evolving customer needs.
Strategic Focus
Management highlighted efforts to strengthen governance with an independent board and experienced leadership, alongside product and credit policy enhancements for retail, MSME and agriculture segments.
Broader Strategic Initiatives
The presentation emphasized transformation initiatives, operational improvements, and targeted performance metrics to enhance returns and efficiencies going forward.