Karnataka Bank Limited interacted with analysts and institutional investors on May 28, 2026, at the Trinity India Annual Global Investor Conference. The meeting, organized by M/s. 360 One Capital Market Private Limited, was held at the Grand Hyatt in Mumbai from 09:00 AM to 03:45 PM IST. The bank confirmed that only information already available in the public domain was shared during the session.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The interaction included both group and one-on-one physical meetings. The presentation discussed during the meeting is available on the bank's official website under the investors section.

Meeting Participants

The following institutional investors and analysts participated in the group and one-on-one meetings:

Sham K, Company Secretary & Compliance Officer, signed the disclosure on May 28, 2026.

Karnataka Bank reported a 40% quarter-on-quarter increase in net profit to ₹408.19 crore for Q4 FY26, driven by improved net interest margins and a sharp reduction in slippages. The bank achieved its highest-ever aggregate business of ₹192,118 crores as of March 31, 2026, reflecting a 5.12% QoQ growth. Karnataka Bank delivered on its guidance for key financial ratios, including net interest margin (NIM) and asset quality, underscoring the effectiveness of its strategic focus on retail, agri, and MSME (RAM) segments.

Business Performance and Guidance

The bank’s total business of ₹192,118 crores exceeded its guidance of ₹192,000 crores. Gross advances stood at ₹83,339.92 crores, slightly below the guided range of ₹84,000 crores to ₹85,000 crores, while deposits reached ₹108,778.75 crores against a guidance of ₹108,000 crores. The CASA ratio improved to 33.61%, surpassing the guidance of 32% to 32.5%.

Asset Quality and Provisions

Asset quality showed marked improvement during the quarter. Gross NPA declined to 2.78% from 3.32% in December 2025, a reduction of 54 basis points. Net NPA stood at 0.98%, an improvement of 33 basis points QoQ. Slippages reduced significantly to 0.20% in Q4 FY26 from 0.47% in the previous quarter. The bank’s provision coverage ratio (PCR), excluding technically written-off accounts, increased to 65.39% from 61.23% in December 2025.

Financial Metrics

Net interest income (NII) for Q4 FY26 rose 6% QoQ to ₹843 crores, supported by a NIM of 3.07%, up from 2.92% in Q3 FY26. The cost of funds improved by 8 basis points to 5.38%. The bank recorded a full-year net profit of ₹1,310.50 crores, a YoY growth of 3%. The cost-to-income ratio for Q4 stood at 50.47%, compared to 58.72% in the preceding quarter, while the full-year ratio was 56.34%.

Strategic Outlook

Management guided for overall business growth of around 15% in FY27, with deposit growth between 10% and 15% and advances growth of 15% to 20%. The bank aims to maintain a CASA ratio above 33% and a CD ratio of 80%. ROA guidance remains at 1% plus, while the cost-to-income ratio is targeted between 52% and 53%. The bank continues to focus on reducing reliance on high-cost bulk deposits and accelerating growth in the RAM segment.