Karnataka Bank reported improved financial performance for the quarter ended March 2026, supported by growth in core banking income and better asset quality indicators. The lender recorded a sharp rise in quarterly profit alongside a decline in non-performing assets during the period.
The bank also reported its highest annual profit and business turnover for FY26, reflecting growth across lending and deposit operations.
Karnataka Bank reported net profit of ₹408 crore for the March quarter, marking an increase of 61.7% compared to ₹252.4 crore in the corresponding quarter last year.
On a sequential basis, profit rose nearly 40% from ₹290.79 crore reported in the December 2025 quarter.
The growth in profitability was supported by higher core income and improved operational performance during the quarter.
Net interest income (NII), which reflects the difference between interest earned and interest paid, increased 8% year-on-year to ₹843 crore from ₹780.7 crore.
The increase in NII indicates growth in the bank’s lending activities and interest-earning assets during the quarter.
Improved margins and stable business growth also contributed to the overall earnings performance.
The bank reported a reduction in bad loan ratios during the March quarter.
Gross non-performing assets (GNPA) declined to 2.78% from 3.32% in the previous quarter, while net non-performing assets (NNPA) improved to 0.98% from 1.31%.
The decline in stressed assets suggests improvement in loan recoveries, credit quality and provisioning levels.
The board of Karnataka Bank recommended a final dividend of ₹5 per equity share for the financial year 2025-26, subject to shareholder approval.
Dividend announcements are generally considered an indicator of a company’s profitability and capital position.
Shares of Karnataka Bank were trading at ₹254.95 on May 20, 2026, at 11:28 AM, compared to the previous closing price of ₹247.75.
Read More: ICICI Bank to Increase Debit Card Foreign Transaction Charges from June 21, 2026.
Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.
Karnataka Bank’s fourth-quarter results reflected higher profitability, growth in core banking income and improved asset quality. Lower bad loan ratios and stronger earnings supported the bank’s overall financial performance during FY26, while the recommended dividend highlighted continued focus on shareholder returns.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing.
Published on: May 20, 2026, 1:17 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
