Karnataka Bank reports robust Q2 FY26 performance with 9.1% PAT increase

Karnataka Bank reported a 9.1% quarter-on-quarter increase in profit after tax (PAT) to INR 319.12 crore for Q2 FY26, as per its unaudited financial results. This growth was accompanied by a decrease in gross non-performing assets (GNPA) to 3.33% and net non-performing assets (NNPA) to 1.35%, reflecting improved asset quality. The bank also reported a healthy capital adequacy ratio (CRAR) of 20.84% and a return on assets (ROA) of 1.03%.

The bank's total deposits stood at INR 1,02,817 crore, with gross advances at INR 73,644 crore for the quarter ending September 30, 2025. This performance aligns with Karnataka Bank’s strategic focus on granular advances growth, digital transformation, and strengthening its management team, including new appointments and a focus on customer-centric products and services.

The board of directors approved the results on November 8, 2025, with an unmodified opinion from the statutory auditors. The bank also disclosed its compliance with SEBI Regulations regarding security cover and utilization of funds from capital instruments, confirming that capital raised earlier was fully utilized for capital adequacy purposes.