Karnataka Bank Q2 FY27 Net Profit Surges 37% to ₹435.89 Crore, Aggregate Business Hits ₹2.07 Lakh Crore
Karnataka Bank reported a 37% YoY increase in Q2 FY27 net profit to ₹435.89 crore. Aggregate business reached a record ₹2,07,132.41 crore. Deposits grew 12% YoY to ₹1,15,117.15 crore, and Gross Advances surged 25% YoY to ₹92,015.26 crore. GNPA improved to 2.27% and NNPA to 0.74%.
The announcement details record-breaking financial performance and significant improvements in key banking metrics, which are highly material for investors and stakeholders.
The bank has reported record-breaking financial figures, including significant growth in net profit, aggregate business, deposits, and advances, alongside an improvement in asset quality.
The Karnataka Bank Limited announced its financial results for the quarter ended September 30, 2026, with its Board of Directors approving the same in a meeting held today.
The bank achieved an all-time high in aggregate business, reaching ₹2,07,132.41 crore. This includes aggregate deposits of ₹1,15,117.15 crore as of September 30, 2026, marking a 12% year-on-year growth from ₹1,02,817.19 crore on September 30, 2025. Retail Term Deposits (RTD) grew by 10% YoY to ₹72,197.32 crore.
Gross Advances stood at ₹92,015.26 crore, a significant 25% YoY increase from ₹73,644.14 crore as of September 30, 2025. The Net Interest Margin (NIM) improved by 45 basis points to 3.17% for the quarter ended September 30, 2026, compared to 2.72% in the prior year period.
Net Profit for the quarter ended September 30, 2026, was ₹435.89 crore, a 37% YoY improvement from ₹319.12 crore in the same quarter last year. For the half-year ended September 2026, the net profit was ₹854.84 crore, up from ₹611.52 crore in the corresponding period of the previous year.
Asset quality showed significant improvement, with Gross Non-Performing Assets (GNPA) decreasing by 106 basis points to 2.27% from 3.33% as of September 2025. Net Non-Performing Assets (NNPA) also declined by 61 basis points to 0.74% from 1.35%. The Provision Coverage Ratio (PCR), excluding Two-in-One Loans (TWO), improved to 68.05% in September 2026 from 60.22% in September 2025.
Shri Raghavendra S. Bhat, Managing Director & CEO, highlighted the historic milestone in aggregate business and net profit, emphasizing the bank's dedication to steady growth and a customer-first approach. He noted the robust 19% YoY expansion in the RAM (Retail, Agriculture, and MSME) segment. Smt. Biji S.S., Executive Director, spoke about the bank's ongoing advancement driven by disciplined implementation and technological advancements to streamline workflows and enhance customer service.
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See the model portfoliosA plain-language summary of a public exchange filing by The Karnataka Bank Limited. Read the original for the full detail.