Karnataka Bank Q4 profit jumps 62% YoY; asset quality improves

Karnataka Bank Limited reported a strong performance for the fourth quarter of FY26, with net profit rising 61.7% year-on-year to ₹408.19 crore compared to ₹252.37 crore in the corresponding quarter last year.

The bank’s operating profit surged 64% YoY to ₹615.04 crore in Q4FY26 from ₹375.02 crore in Q4FY25, while net interest income (NII) increased 8% YoY to ₹842.95 crore against ₹780.68 crore a year ago.

Net interest margin (NIM) improved marginally to 3.07% in Q4FY26 from 2.98% in the year-ago quarter, reflecting a 9 basis points expansion.

On the business front, aggregate business stood at ₹1,92,118.67 crore, up 5.1% YoY. Gross advances grew 6.9% YoY to ₹83,339.92 crore, while total deposits increased 3.8% YoY to ₹1,08,778.75 crore.

CASA deposits rose 9.9% YoY to ₹36,559.66 crore, helping the CASA ratio improve to 33.61% from 31.75% in Q4FY25.

Asset quality also strengthened during the quarter. Gross NPA declined to 2.78% from 3.08% YoY, while net NPA improved to 0.98% from 1.31%. In absolute terms, gross NPA fell 3.4% YoY to ₹2,320.93 crore, and net NPA dropped 20% YoY to ₹803.22 crore.

The bank’s provision coverage ratio (PCR) improved to 83.54% compared to 81.42% in the year-ago period.

Sequentially, Karnataka Bank also reported improvement across key parameters. Q4 net profit rose 40.4% quarter-on-quarter from ₹290.79 crore in Q3FY26, while operating profit increased 36.1% QoQ.

Return on assets (RoA) improved to 1.27% in Q4FY26 from 0.81% in the corresponding quarter last year.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.