Karnataka Bank reported a consolidated turnover of ₹1,92,119 crore for FY26, up from ₹1,82,766.21 crore in the previous year, according to its Business Responsibility and Sustainability Report (BRSR). The bank also disclosed a net worth of ₹12,644.04 crore as on March 31, 2026.

The lender expanded its focus on sustainable finance, increasing green lending exposure to ₹515.60 crore. This portfolio includes ₹400 crore in renewable energy onward lending, ₹92.65 crore in corporate renewable energy projects, and ₹22.95 crore in electric vehicle loans.

What the Numbers Show

While total advances stood at ₹83,339.92 crore, the bank’s green lending exposure remains a small fraction of its total book. However, the specific allocation toward renewable energy and EVs signals a strategic shift toward policy-supported sectors. Additionally, employee welfare spending decreased to ₹1,256.34 crore (0.65% of turnover) from ₹1,347.58 crore (0.74% of turnover) in FY25, despite the rise in overall revenue.

Operational and Environmental Metrics

Karnataka Bank’s total energy consumption rose to 51.43 TJ in FY26 from 47.94 TJ in FY25. This increase was driven by higher non-renewable energy use, which totaled 50.61 TJ compared to 47.55 TJ previously. Renewable energy generation via solar installations reached 0.82 TJ, up from 0.39 TJ.

Greenhouse gas emissions followed a similar trajectory:

The bank disposed of 69.2 metric tonnes of e-waste through CPCB-certified recyclers, a significant increase from 0.388 MT in FY25.

Workforce and CSR Initiatives

As on March 31, 2026, the bank employed 9,047 permanent staff, with women constituting 32.61% of the workforce. The overall employee turnover rate was 2.29%, slightly higher than the 2.13% recorded in FY25.

Under its Corporate Social Responsibility framework, Karnataka Bank sanctioned ₹31.02 crore across 285 projects. Education remained the largest beneficiary, accounting for 40.09% of the sanctioned amount, followed by healthcare at 21.30% and environmental sustainability at 10.97%.

Karnataka Bank has set a target of ₹6,000 crore growth in gold loans, alongside a RAM rebalancing initiative aimed at reshaping its lending portfolio.

Strategic focus on gold loans and RAM rebalancing

The bank's dual-pronged approach centres on expanding its gold loan book by ₹6,000 crore while simultaneously undertaking a RAM rebalancing exercise. RAM, which refers to the Retail, Agriculture, and MSME segments, represents a key focus area for banks seeking to diversify and strengthen their credit portfolios.

The gold loan segment has emerged as a high-priority vertical for Karnataka Bank, with the ₹6,000 crore target reflecting the bank's intent to deepen its presence in secured lending. Gold loans, backed by physical collateral, are generally considered lower-risk advances, making them an attractive avenue for portfolio expansion.

The RAM rebalancing effort signals a broader strategic realignment, with the bank looking to calibrate its exposure across retail, agricultural, and MSME borrowers. Such rebalancing exercises are typically undertaken to optimise credit risk distribution and align the loan book with evolving business priorities.