Raghavendra S Bhat, Managing Director and CEO of Karnataka Bank
Karnataka Bank recorded a net profit of ₹418.95 crore in the first quarter of 2026-27 against a net profit of ₹292.40 crore in the corresponding period of the previous fiscal, registering a growth of 43.28 per cent.Raghavendra S Bhat, Managing Director and CEO of the bank, said the bank has achieved an all-time high aggregate business of ₹1,97,006.62 crore and a net profit of ₹418.95 crore for first quarter of 2026-27, reflecting the bank’s unwavering commitment to sustainable growth, prudent financial management and customer-centric banking.He said that the asset quality of the bank improved significantly, supported by sound lending practices, effective recovery mechanisms, and sustained monitoring of the loan portfolio.Gross NPA (non-performing assets) improved by 88 bps (basis points) to 2.58 per cent from 3.46 per cent as of June 2025. Net NPA improved by 57 bps to 0.87 per cent from 1.44 per cent as compared to June 2025.The return on assets stood at 1.29 per cent (0.97 per cent).Net interest income increased to ₹938.29 crore (₹755.60 crore).Gross advances stood at ₹86,610.21 crore (₹74,267.02 crore) registering year-on-year growth of 17 per cent. Net interest margin increased from 2.82 per cent in the first quarter of 2025-26 to 3.20 per cent for the quarter ended June 30, 2026.The aggregate deposits of the bank stood at ₹1,10,396.41 crore (₹1,03,242.17 crore), a growth of 7 per cent.Retail term deposits were at ₹69,410.29 crore (₹65,786.24 crore), an increase of 6 per cent. The CASA (current account savings account) ratio stood at 32.42 per cent (30.84 per cent).He said the bank’s CRAR (Capital to Risk Asset Ratio) improved from 20.46 per cent as on June 30 2025, to 21.10 per cent as on June 30 2026, reflecting its strong capital position and continued commitment to financial resilience.“Our digital transformation journey continues to gather momentum as we strengthen our technology capabilities to deliver innovative, secure, and customer-centric banking solutions. By embracing digital innovation and leveraging data-driven insights, we are simplifying customer experiences, enhancing operational efficiency, and building a future-ready bank that is well positioned to meet the evolving expectations of our customers,” he said.Biji SS, Executive Director of the bank, said the bank continues to strengthen its business fundamentals through prudent risk management, enhanced operational resilience, and a steadfast focus on governance and compliance.Published on July 29, 2026
