Karnataka Bank Ltd. has disclosed its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The bank submitted the disclosure to the National Stock Exchange of India Limited and BSE Limited on July 30, 2026, in compliance with regulatory requirements. The filing includes the audio recording of the post-earnings analysts and institutional investors meeting held on the same day at 04.00 PM IST.

The disclosure was made pursuant to Regulation 30 (4) read with Clause 15 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, under Regulation 46 of the same regulations, the bank provided access to the audio recording via its official website. This ensures transparency and allows investors to review management’s commentary on the quarterly performance.

Key Details

Sham Kanathila, Company Secretary & Compliance Officer, signed the submission. The audio recording can be accessed from the bank’s investor relations page at https://karnatakabank.bank.in/investors/quarterly-results . The bank’s registered office is located at Mahaveera Circle, Kankanady, Mangaluru.

What the Numbers Show

While the specific financial metrics such as net profit, revenue, or EBITDA are not detailed in this disclosure notice, the release of unaudited results marks the completion of the reporting cycle for Q4FY26. Investors are advised to refer to the full financial statements and the earnings call transcript for granular data on asset quality, credit growth, and profitability trends.

Karnataka Bank delivered its strongest quarterly performance to date in Q1FY27, reporting a net profit after tax (PAT) of ₹418.95 crore, a 43% year-on-year increase from ₹292.40 crore in Q1FY26. The lender's aggregate business crossed the ₹2 lakh crore mark, reaching ₹1,97,006.62 crore as of June 30, 2026, signaling robust growth momentum. This financial strength is underpinned by a significant expansion in Net Interest Margin (NIM) to 3.20%, up 38 basis points (bps) YoY, and a sharp improvement in asset quality that reduced provisioning burdens.

The Board of Directors approved the unaudited standalone and consolidated results on July 29, 2026, following a review by the Audit Committee on July 28, 2026. The results were subjected to a limited review by Joint Statutory Auditors Ravi Rajan & Co. LLP and R.G.N. Price & Co., who issued an unmodified opinion. The disclosure was made pursuant to Regulations 30, 33, 51, and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The bank's profitability surge was primarily driven by lower credit costs rather than top-line expansion. Provisions for non-performing advances dropped significantly to ₹25.64 crore from ₹117.59 crore in the corresponding period last year. Total provisions fell to ₹28.70 crore from ₹110.80 crore YoY. Operating profit before provisions rose 24.2% to ₹580.34 crore. Interest income increased 5.4% to ₹2,382.65 crore, while interest expense declined 4.1% to ₹1,444.36 crore, boosting Net Interest Income (NII) by 24.2% to ₹938.29 crore.

Asset quality metrics showed consistent improvement across both annual and sequential periods. Gross Non-Performing Assets (GNPA) ratio declined to 2.58% from 3.46% YoY and 2.78% sequentially. Net NPA (NNPA) ratio fell to 0.87% from 1.44% YoY and 0.98% sequentially. The Provision Coverage Ratio (excluding Two-Opposite-View accounts) improved to 67.03%. The Capital Adequacy Ratio (CRAR) under Basel III norms stood at 21.10%, up from 20.46% in June 2025.

What the Numbers Show

The divergence between modest revenue growth (4.5%) and strong profit growth (43%) highlights the normalization of credit costs as the primary earnings driver. The decline in interest expense despite higher interest income reflects successful liability management, contributing to the NIM expansion. Additionally, the standard restructured portfolio decreased by 5% quarter-on-quarter to ₹763 crore, indicating progress in resolving stressed assets. Return on Assets (ROA) improved to 1.29% from 0.97%, demonstrating enhanced capital efficiency.

Segmental and Operational Insights

Retail Banking remained the largest revenue contributor at ₹1,265.74 crore, with segment results improving to ₹309.58 crore from ₹262.51 crore YoY. Corporate Banking contributed ₹909.61 crore. Gross Advances grew 17% YoY to ₹86,610.21 crore, while Aggregate Deposits rose 7% to ₹1,10,396.41 crore. The CASA ratio improved by 158 bps to 32.42%, driven by a 12.4% YoY growth in low-cost deposits to ₹35,787.30 crore.

Managing Director & CEO Raghavendra S. Bhat emphasized sustainable growth and digital transformation, while Executive Director Biji S. S. highlighted disciplined execution. The bank also received awards for Cyber Resilience and Product Innovation at the IBA CISO Summit and Great Indian BFSI Awards 2026.