Karnataka Bank , a prominent player in the Indian banking sector, has released its financial results for the second quarter, revealing a quarter-on-quarter increase in net profit despite a marginal decline in topline performance.

Financial Performance Overview

The bank reported a net profit of Rs 319.12 crore for Q2, up 9.1% from Rs 292.40 crore in the previous quarter. For the half-year ended September, net profit stood at Rs 611.52 crore, compared to Rs 736.40 crore in the same period last year. The bank's Net Interest Income for the quarter was Rs 728.12 crore.

Improved Asset Quality

Karnataka Bank showed improvement in its asset quality:

• Gross Non-Performing Asset (NPA) ratio decreased to 3.33% from 3.46% in the previous quarter
• Net NPA ratio fell to 1.35% from 1.44% in the previous quarter

These improvements in asset quality suggest that the bank has been effective in managing its loan portfolio and reducing the proportion of non-performing assets.

Key Financial Metrics

All financial figures in Rs crore

Other Key Indicators

• Credit-Deposit ratio: 71.63%
• Capital Adequacy Ratio: Improved to 20.84% from 20.46% in the previous quarter

Management Commentary

Managing Director & CEO Raghavendra S. Bhat noted that while the bank witnessed a marginal quarterly decline in topline performance, it achieved improvement in asset quality. He emphasized the bank's continued focus on RAM (Retail, Agriculture, and MSME) segments and strengthening low-cost deposits.

Conclusion

While Karnataka Bank has faced a marginal decline in its topline performance in Q2, the improvement in asset quality and the quarter-on-quarter increase in net profit are positive indicators. The bank's focus on strengthening its core segments and improving its deposit mix suggests a strategic approach to sustainable growth. Investors and stakeholders will likely be watching closely to see how these trends develop in the coming quarters and whether the bank can leverage its improved asset quality to drive future growth.

Karnataka Bank , a prominent player in India's banking sector, has announced a significant change in its senior management. Ramaswamy Subramanian, the bank's Chief Product Officer (CPO), has resigned from his position, marking a notable shift in the bank's leadership structure.

Key Details of the Resignation

According to the bank's official communication to the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE), Subramanian was relieved from his duties following the completion of internal formalities. The bank clarified that he would cease to be a Senior Management Personnel from the close of business hours on October 31, 2025.

Regulatory Compliance

Karnataka Bank's disclosure aligns with the regulatory requirements set by the Securities and Exchange Board of India (SEBI). The bank has adhered to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency in its corporate governance practices.

Implications for Karnataka Bank

This change in the senior management team could potentially impact the bank's product strategy and innovation initiatives. As the Chief Product Officer, Subramanian likely played a crucial role in shaping the bank's product offerings and customer-centric solutions.

Other Recent Developments

It's worth noting that this announcement comes on the heels of other recent changes within Karnataka Bank's senior management. On October 30, 2025, the bank had announced that Mr. Niranjankumar R, the Chief Human Resources Officer, was allocated additional charge of the Branch Banking Department.

Looking Ahead

As Karnataka Bank navigates this transition, stakeholders will be keen to observe how the bank addresses the vacancy left by Subramanian's departure. The banking sector continues to evolve rapidly, with increasing emphasis on digital transformation and innovative financial products.

Karnataka Bank is scheduled to consider its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, in a board meeting on November 8, 2025. This upcoming financial disclosure may provide further insights into the bank's performance and strategic direction amidst these leadership changes.