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Informist, Tuesday, Feb. 10, 2026

 

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--Karnataka Bank Oct-Dec net profit INR 2.91 bln vs INR 2.84 bln yr ago 
--Karnataka Bank Oct-Dec total income INR 25.22 bln vs INR 25.35 bln yr ago 
--Karnataka Bank Oct-Dec provisions INR 948.60 mln vs INR 837.70 mln yr ago 
--Karnataka Bank gross NPA ratio 3.32% on Dec 31 vs 3.33% qtr ago 
--Karnataka Bank net NPA ratio 1.31% on Dec 31 vs 1.35% qtr ago 
--Karnataka Bank Basel III capital adequacy ratio 19.94% on Dec 31 
--Karnataka Bank provision coverage ratio 80.90% on Dec 31 
--Karnataka Bank Apr-Dec net profit INR 9.02 bln vs INR 10.20 bln year ago
--Karnataka Bank Apr-Dec total income INR 76.65 bln vs INR 75.96 bln yr ago 
 

 

By Durgesh Nandan

 

MUMBAI – Karnataka Bank Ltd. reported a rise in its net profit for the December quarter after four consecutive quarters of on-year fall, even though its provisions rose over 13% on year. An on-year fall in operating expenses and interest expenses aided the bottom line. Sequentially, however, the jump in provisions was nearly fourfold, dragging the bottom line.

 

The bank's net profit rose over 2.5% on year to INR 2.91 billion in the December quarter, but was nearly 9% lower sequentially. The bank's provisions totalled INR 949 million, up over 13% on year and 373% on quarter. Sequentially, this is the sharpest jump in provisions ever, based on data available with Informist.

 

The bank's total income for the December quarter was INR 25.22 billion, down nearly 1% on year and flat on quarter. 

 

The bank's interest income for the December quarter fell over 1% on year to INR 22.20 billion, pulling down its total income marginally. The bank's net interest income--the difference between interest earned and interest expended--for the quarter was INR 7.92 billion, down marginally on year. The bank's net interest margin improved to 2.92% in the December quarter from 2.72% in the September quarter, but fell from 3.02% in the December quarter of last year.

 

The bank's total expenditure declined 1.5% on year to INR 20.71 billion, aiding the bottom line. The fall was primarily due to a near 9% drop in operating expenses to INR 2.82 billion, which the bank aims to "manage" better, it said in an investor presentation.

Karnataka Bank's operating profit rose over 4% on year to INR 4.52 billion, with its deposits and advances showing divergent performance. The bank had deposits totalling INR 1.04 trillion as on Dec. 31, up over 4% from a year ago. However, advances were down over 1% to INR 757 billion. The provision coverage ratio was 80.90% as on Dec. 31. up 26 basis points from 80.64% year ago, but down 15 bps on quarter. The bank's current account saving account ratio rose 124 bps on year and 52 bps on quarter to 31.53% as at the end of December.

 

The bank's Basel III capital adequacy ratio was 19.94% as on Dec. 31, higher than 17.64% a year ago but lower than 20.84% a quarter ago.

 

Karnataka Bank's gross non-performing asset ratio was 3.32% as on Dec. 31, almost flat on quarter but 21 bps higher on year. Net NPA ratio improved to 1.31% as on Dec. 31 from 1.35% a quarter ago and 1.39% a year ago.

 

"We reiterate that out focus on the RAM (Retail, Agri, and MSME) segments, and pursuing a strong base in low-cost deposits has started accruing benefits to the Bank," Raghavendra S. Bhat, managing director and chief executive officer of the bank, said in a press release.

 

For the nine months ended December, Karnataka Bank's net profit was INR 9.02 billion, down nearly 12% on year. The bank's total income for the period rose about 1% to INR 76.65 billion. The bank released its financial results after market hours on Tuesday. Shares of the bank closed almost flat at INR 206.70 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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