Karnataka Bank has reported an all-time high annual net profit of ₹1,310.50 crore for the financial year ended March 31, 2026. The bank's net profit for the quarter ended March 31, 2026, stood at ₹408.19 crore, rising sharply from ₹252.37 crore in the corresponding quarter of the previous year. The Board of Directors has recommended a final dividend of ₹5.00 per equity share, or 50%, for the financial year, subject to shareholder approval.

Financial Performance

The bank demonstrated robust growth in profitability and operational efficiency during the quarter. Net Interest Income (NII) for Q4 FY26 grew by 7.98% year-on-year to ₹842.95 crore. The Net Interest Margin (NIM) improved to 3.07% in Q4 FY26 from 2.92% in Q3 FY26. The Cost to Income ratio improved significantly to 50.47% in Q4 FY26 from 68.98% in the previous year's corresponding quarter. The following table summarises the key financial metrics for the quarter:

Asset Quality and Capital Adequacy

Karnataka Bank witnessed a significant improvement in asset quality metrics both on a year-on-year and sequential basis. The Gross Non-Performing Assets (GNPA) ratio declined to 2.78% in Q4 FY26 from 3.32% in the previous quarter and 3.08% in Q4 FY25. The Net Non-Performing Assets (NNPA) ratio improved to 0.98% from 1.31% a year ago. The Provision Coverage Ratio (excluding technical write-offs) increased to 65.39%, reflecting stronger risk management practices.

Business Growth

The bank's gross advances grew by 8% quarter-on-quarter to ₹83,339.92 crore, while total deposits increased to ₹1,08,778.75 crore. The Current Account Savings Account (CASA) ratio improved to 33.61% in Q4 FY26. The bank achieved an all-time high aggregate business turnover of ₹1,92,118.67 crore for the full year, underscoring sustained momentum across its core banking operations.

Karnataka Bank Ltd. has appointed Mrs. Biji Sreekrishnavilas Sankaranarayanan as an Additional Director, designated as a Whole Time Director in the capacity of Executive Director and Key Managerial Personnel (KMP). The appointment was made during the Board meeting held on May 19, 2026, and is valid for a period of three years from the date she takes charge.

The Reserve Bank of India had conveyed its approval for this appointment via a letter dated May 13, 2026. The bank confirmed that Mrs. Sankaranarayanan has not been debarred from holding the office of Director by SEBI or any other authority. The appointment is subject to the approval of the shareholders in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013.

Profile of the Appointee

Mrs. Biji Sreekrishnavilas Sankaranarayanan brings 31 years of experience to the role. She is a Strategic Banking Leader with expertise spanning corporate banking, retail & branch banking, liabilities, secured assets, transformation, and digital modernization.

Her professional track record includes steering nationwide banking networks comprising 950 branches as independent profit centres. She has experience in scaling corporate banking verticals, strengthening risk frameworks, and improving asset quality. Additionally, she has focused on accelerating enterprise-wide profitability and building high-performance leadership pipelines.

Mrs. Sankaranarayanan holds a Post Graduate degree in Mathematics, an MBA in HR, and a Professional Certification in Management of Social Initiatives from IIMK. She is not related to any of the existing Directors on the Bank's Board.

Appointment Details