Karnataka Bank has officially announced the retirement of Mr. Ravichandran S., General Manager of the Legal & Recovery Department, who will be stepping down from his position on February 28, 2026, upon reaching superannuation age. The announcement was made through a regulatory filing to comply with disclosure requirements under SEBI regulations.

Senior Management Change Details

The bank has informed both the National Stock Exchange of India Limited and BSE Limited about this significant change in senior management personnel. Mr. Ravichandran S. will cease to be a Senior Management Personnel of the bank from the close of business hours on February 28, 2026.

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Karnataka Bank has also referenced SEBI Master Circular No.: SEBI/HO/49/14/14(7) 2025-CFD-POD2/1/3762/2026 dated January 30, 2026, in providing the required details about the retiring executive.

Corporate Communication

The formal communication was signed by Sham K, Company Secretary & Compliance Officer of Karnataka Bank, and was digitally signed on February 27, 2026. The bank's registered and head office is located at Mahaveera Circle, Kankanady, Mangaluru, and the company trades on stock exchanges under NSE scrip code KTKBANK and BSE scrip code 532652.

This retirement represents a routine senior management transition as part of the bank's normal succession planning process, with the change occurring due to the executive reaching the standard retirement age rather than any operational or strategic reasons.

Karnataka Bank reported its financial results for the third quarter of FY26 ended December 31, 2025, showing a mixed performance with profit decline offset by margin improvements and strategic portfolio repositioning. The bank's Managing Director and CEO Raghavendra S. Bhat emphasized the institution's focus on strengthening retail and MSME portfolios while optimizing funding costs during the earnings call held on February 11, 2026.

Financial Performance Overview

The bank's profitability showed contrasting trends across different time periods. While PAT declined on a sequential basis, year-on-year performance remained positive, reflecting the bank's ongoing strategic transition.

Business Growth and Portfolio Mix

Karnataka Bank's aggregate business reached INR 1,81,394 crores as of December 31, 2025, representing a 3% quarter-on-quarter growth from INR 1,76,461 crores in September 2025. The bank's strategic focus on the retail, agriculture, and MSME (RAM) segments drove the growth momentum.

Gross advances stood at INR 77,283.85 crores, reflecting a robust 5% QoQ growth from INR 73,644.15 crores. The growth was primarily led by MSME, housing, and gold loan portfolios, which together added INR 962 crores during the quarter. The bank continued its strategy of replacing low-yielding Inter-Bank Participation Certificate (IBPC) advances with higher-yielding loans, reducing the IBPC portfolio from INR 1,860 crores to INR 1,639 crores.

Deposit Composition and Cost Management

The bank's deposit strategy focused on improving the funding mix and reducing dependence on high-cost bulk deposits. Key developments included:

Retail term deposits (less than INR 3 crores) grew from INR 65,531.80 crores to INR 66,252.24 crores, showing 6% year-on-year growth. The bank's conscious effort to curtail high-cost bulk deposits resulted in improved cost control, with the majority of deposit renewals conducted at predefined card rates.

Asset Quality and Risk Management

The bank maintained stable asset quality metrics despite some challenges. Gross NPA percentage stood at 3.32% as of December 31, 2025, showing marginal improvement from 3.33% in September 2025. Net NPA improved to 1.31% from 1.35% in the previous quarter.

The bank's provision coverage ratio improved to 61.23% from 60.22% in the previous quarter, reflecting management's commitment to strengthening balance sheet provisions. Standard restructured advances decreased by 7.6% QoQ to INR 867.95 crores from INR 939.35 crores.

Strategic Initiatives and Future Outlook

Karnataka Bank outlined several strategic initiatives to drive future growth. Under the Agri Infrastructure Fund, the bank is exploring opportunities for post-harvest management infrastructure and community farming assets. For MSME business scaling, ecosystem tie-ups are underway, including onboarding business facilitators and Loan Service Providers for electric vehicle financing.

The bank is also launching new products including 'Soulabhya Deposit' with partial withdrawal facility and enhancements to Flexi Deposit Scheme, Supply Chain Finance, and Trust Finance offerings. Management expressed confidence in achieving a credit-deposit ratio between 76% and 80%, with current levels at 74.23%.

Looking ahead, management targets overall business growth of 15%, with advances growth of 15-20% and liability growth of 10-15%. The bank aims to achieve ROA of 1% plus by March 2026, with gradual improvements to 1.1-1.2% in subsequent years. Net interest margin is expected to return to 3% plus levels, supported by the strategic focus on higher-yielding RAM segments and improved funding cost management.