MANGALURU: Karnataka Bank's net profit fell 27% to Rs 292.4 crore in Q1 of FY26 as against Rs 400.33 crore during the corresponding Q1 of FY 25.
In a meeting of the board of directors held on Tuesday at the bank’s headquarters in Mangaluru, the board approved the financial results for the quarter that ended on June 30.
The bank’s aggregate business (gross) stood at Rs 1,77,509.19 crore for Q1 of FY26 compared to Rs 1,75,534.89 crore for Q1 of FY 25 registering a YoY growth of 1.12%. The aggregate deposits of the bank stood at Rs 1,03,242.17 crore for Q1 of FY 26 as against Rs 1,00,079.88 crore in Q1 of FY 25 with a YoY growth of 3.16%.
The bank’s gross advances stood at Rs 74,267.02 crore as against Rs 75,455.01 crore in Q1 of FY25. The operating profit of the bank stood at Rs 467.29 crore and net interest income stood at Rs 755.60 crore in Q1 of FY26.
The book quality is steadily improving with gross NPAs declined to 3.46% at end of Q1 of FY26 compared to 3.54% in the corresponding Q1 of FY25. Net NPAs stood at 1.44% in Q1 of FY26 from 1.66% in the corresponding Q1 of FY25. The capital adequacy ratio of the bank has further improved to 20.46% at end of Q1 of FY26 as compared to 17.64% at end of Q1 of FY25.
Announcing the results at the bank’s headquarters here, Raghavendra S Bhat, Managing Director & CEO, said, “During the period, the bank has registered a moderate YoY growth in topline numbers. The investments made by the bank during last FY on development of infrastructure and processes will start showing results in the coming quarters."
He added, "Our focus will continue to be in RAM segments along with improving the low-cost deposits. This will result in an improvement in spreads, and resultantly NII. Further, the bank is also pursuing its efforts to create quality credit assets and initiatives are there at all levels to restrict slippages and recover non-performing assets. Our path of growth is a continuous process, and we are committed to all the stakeholders."