Raghavendra S Bhat, Managing Director and CEO of Karnataka Bank
Karnataka Bank recorded a net profit of ₹290.79 crore during the third quarter of 2025-26, against ₹283.60 crore in the corresponding quarter of 2024-25, registering a growth of 2.54 per cent.
The board of directors, which met on Tuesday, approved the financial results for the quarter and nine-month period ended December 31, 2025.
Interest income stood at ₹792.06 crore during the third quarter of FY2025-26, against ₹792.78 crore in the corresponding period of FY2024-25. Other income increased to ₹302.30 crore in Q3 FY2025-26, from ₹292.36 crore in Q3 FY2024-25.
Net interest margin stood at 2.92 per cent during the third quarter of 2025-26, against 3.02 per cent in the corresponding period of 2024-25.
Asset quality improved during the quarter, with gross NPAs (non-performing assets) declining to 3.32 per cent as on December 31 2025, compared to 3.33 per cent as on September 30, 2025. Net NPAs improved to 1.31 per cent, from 1.35 per cent over the same period. Gross NPAs were at 3.11 per cent and net NPAs at 1.39 per cent during Q3 of 2024-25.
The bank’s capital adequacy ratio stood at 19.94 per cent, compared to 20.84 per cent as of September 2025.
In line with RBI’s revised draft guidelines, Liquidity Coverage Ratio as on December 31, 2025, stood at 186.84 per cent.
Gross advances stood at ₹77,282.85 crore during Q3 of 2025-26, against ₹77,859.75 crore in the corresponding period of 2024-25.
Gross deposits increased to ₹1.04 lakh crore in Q3 FY2025-26, from ₹1 lakh crore in the corresponding period of 2024-25. CASA (current account savings account) deposits increased to 31.53 per cent during the third quarter of FY 2025-26, from 30.29 per cent in Q3 of FY 2024-25.
Quoting Raghavendra S Bhat, Managing Director and CEO, a media statement said the bank showed an improvement in asset quality.
“We reiterate that our focus on the RAM (retail, agri and MSME) segments, and pursuing a strong base in low-cost deposits has started accruing benefits for the bank. As the bank has energized the distribution ecosystem by building rigours into the processes, the accretion of a high-quality credit portfolio is now visible. In parallel, digital transformation initiatives are gaining traction, with the development of new products and platforms to enhance customer experience and improve operational efficiency,” he said.
Various analytical tools have now been embedded into core business processes, enabling analytics-driven decision-making and supporting predictive and strategic use cases to drive efficiency and deeper insights across the bank, he said, adding, “Our mission and vision remain firmly anchored as we advance our objectives with renewed clarity and momentum.”
Published on February 10, 2026
