Karnataka Bank profit jumps 36.6% to 435.86 crore rupees in second quarter
Key Facts
Karnataka Bank reported a 36.6% year-on-year rise in consolidated net profit to 435.86 crore rupees in the September 2026 quarter, according to NDTV Profit. The results came with improved non-performing loan indicators and lower provisions, alongside increases in income and operating profit before provisions and contingencies. Total income rose to 2,793.96 crore rupees, compared with 2,522.58 crore in the corresponding quarter of 2025. The bank's shares also rose 4.25% to 312.80 rupees at around 2:51 p.m. on Wednesday, October 28, according to the same report. That was an intraday move at the time of the report, not a closing price.
A PTI report published by Rediff Moneynews said net profit was 319 crore rupees in the September 2025 quarter, placing the current increase in the context of a direct year-on-year comparison. The report said total income in the previous period was 2,523 crore rupees, a rounded figure consistent with NDTV Profit's more detailed comparison of 2,522.58 crore. The comparison shows that the rise in profit came alongside revenue growth, rather than in isolation. Interest income rose to 2,503.87 crore rupees from 2,179.18 crore a year earlier. Interest from advances and bills accounted for the largest share of this item, at 1,957.48 crore rupees compared with 1,640.79 crore in the corresponding quarter.
Interest income from investments rose to 442.08 crore rupees in the September 2026 quarter, compared with 406.46 crore a year earlier, according to NDTV Profit. Thus, both interest income from advances and bills and returns from investments increased year on year during the period. At the operating level, profit before provisions and contingencies rose 36.8% to 602.20 crore rupees. Provisions and contingencies fell to 14.74 crore rupees, from 20 crore in the September 2025 quarter and 28.7 crore in the June 2026 quarter. This means the burden of these items was lower than in both the annual and quarterly comparisons, alongside growth in operating profit.
Asset quality also improved compared with the previous quarter, according to NDTV Profit data. The gross non-performing asset ratio fell to 2.27% in the September quarter from 2.58% in June 2026. The net non-performing asset ratio declined to 0.74% from 0.87% in the previous quarter. On a year-on-year basis, a PTI report published by Rediff said the gross ratio fell from 3.33% in the September 2025 quarter to 2.27%, while the net ratio declined from 1.35% to 0.74%. Both the quarterly and annual comparisons show that non-performing loan ratios were lower at the end of September than in the two reference periods.
As another indicator of its financial position, the capital adequacy ratio stood at 20.36% at the end of September 2026, compared with 20.84% at the end of September 2025, according to the PTI report published by Rediff. This means the ratio declined year on year, even as its reading was 20.36% at the end of the current period. This reading puts improved profitability and asset quality alongside a different movement in the capital adequacy ratio, without changing the reported comparison between the two dates. The figures provided did not include a quarterly comparison for this ratio. The report also gave no specific date for the bank's next results or subsequent event; the latest time reference for the stock remains its intraday price at around 2:51 p.m. on October 28.