Karnataka Bank posts ₹290.79 crore net profit in Q3 FY26

Karnataka Bank posted a net profit of ₹290.79 crore during Q3 FY26 (October-December), compared to ₹283.60 crore in the corresponding quarter of the previous year and ₹319.12 crore as on Q2 FY26 (July-September).

The bank recorded a steady progress in aggregate business, which stood at ₹1,81,394.37 crore as on December 31, 2025, compared to ₹1,76,461.34 crore as on September 30, 2025, registering a 3% QoQ increase.

The Board of Directors of the bank, in the meeting held in Mangaluru on February 10, approved the financial results for the third quarter and nine months period which ended on December 31, 2025.

Bank’s gross advances stood at ₹77,282.85 crores, registering QoQ growth of 4.9%, and aggregate deposits stood at ₹1,04,111.52 crores registering QoQ growth of 1.3%, a release from the bank said.

Asset quality improved during the quarter, with GNPA declining to 3.32% as on December 31, 2025, compared to 3.33% as on September 30, 2025. Similarly, NNPA improved to 1.31% from 1.35% over the same period.

The Bank’s Capital Adequacy Ratio stood at 19.94% compared to 20.84% as of September 2025.

Announcing the results Raghavendra S. Bhat, managing director and CEO of the bank said, “During the quarter, the Bank recorded a QoQ growth of 5% in Advances and 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 to the Bank.”

He further said, “As the Bank has already energised the distribution ecosystem by building rigours into the processes, the accretion of a high-quality credit portfolio is now becoming 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. Further, various analytical tools have now been embedded into the core business processes, enabling analytics-driven decision-making and supporting predictive and strategic use cases to drive efficiency and deeper insights across the Bank.”