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Karnataka Bank posted quarterly net profit of ₹319.12 crore during the quarter that ended in September, 2025. The net profit improved by 9.1% when compared to the quarter that ended in June, 2025 when the net profit was ₹292.40 crore. In the meeting of the board of directors held in Mangaluru on Saturday, the board approved the financial results for the quarter and for the half year which ended on September 30, 2025. Furthermore, for the half year which ended in September 2025, the net profit stood at ₹611.52 crore, as against ₹736.40 crore for half year which ended in September 2024, the bank said in a release. For the quarter ending September 2025, the net interest income stood at ₹728.12 crore. The NPAs (non performing assets) have further moderated as the GNPAs (gross non performing assets) reduced to 3.33% as against 3.46% as of June 2025, while NNPAs (net non performing assets) also reduced to 1.35% as against 1.44% as of June 2025. The aggregate business of the bank stood at ₹1,76,461.34 crore (on a gross basis) for Q2FY26 compared to ₹1,77,509.19 crore in Q1FY26. The aggregate deposits of the bank stood at ₹1,02,817.19 crore in Q2FY26 as against ₹1,03,242.17 crore as of Q1FY26. The bank’s gross advances stood at ₹73,644.15 crore in Q2FY26 when compared to ₹74,267.02 crore as of Q1FY26. However there was a growth in the RAM (retail, agri & MSME) segment of the bank. The CD ratio (gross) of the bank stood at 71.63%. Announcing the results at the bank’s head office in Mangaluru, Raghavendra S. Bhat, managing director and CEO of the bank said: “During the quarter, the bank witnessed a marginal QoQ (quarter over quarter) decline in topline performance but achieved improvement in asset quality. Our focus will continue to remain on the RAM segments, alongside strengthening our base of low-cost deposits. These efforts are expected to enhance spreads and, in turn, improve NII (net interest income)”. “The bank is also actively working to build a high-quality credit portfolio, with initiatives across all levels aimed at minimising slippages and recovering NPAs. Additionally, our Analytical Centre of Excellence (ACoE) has been instrumental in driving data-led transformation through the implementation of tools such as Retail Loan Propensity, Micro Market Analysis, Deposit Propensity, Primary Bank Index, Collection Prioritisation, and Behaviour Scorecard. These tools have been integrated into our business processes, embedding analytics into decision-making and supporting predictive and strategic analytics use cases to enhance efficiency and insight across the bank”. “Our mission and vision remains clear and steadfast as we continue to pursue, our objectives with renewed focus and energy.”
