The Karnataka Bank Limited — PPTs, 19-05-2026: Investor Presentation

Karnataka Bank delivered strong audited financial results for the quarter and financial year ended March 31, 2026.

1. **Business Performance:** The bank saw Q4FY26 Gross Advances grow 8% QoQ to ₹83,340 Cr, with Total Deposits up 4% to ₹1,08,779 Cr. CASA deposits rose 11% QoQ to ₹36,560 Cr. Profit After Tax (PAT) surged 40% QoQ to ₹408 Cr. Asset quality improved significantly, with Gross NPA at 2.78% (down 54 bps QoQ) and Net NPA at 0.98% (down 33 bps QoQ). ROA hit 1.27% and ROE reached 12.69%.

2. **Growth Drivers or Strategy:** The bank is accelerating its digital transformation, launching new products for MSME, Retail, and Agri sectors, and expanding digital touchpoints. Strategic focus includes optimizing funding costs, managing operating expenses, and enhancing asset quality, with key targets like NNPA (0.98% actual vs 1-1.2% target) and CASA (33.61% actual vs 30-32% target) successfully met or surpassed.

3. **Recent Developments:** New offerings include the KBL Soulabhya Plus Deposit Scheme, pre-approved personal loans, and Agri Input Loans for tobacco farmers. A partnership with PINE LABS for POS services launched in April-26, alongside efforts to scale Dairy Neo Banking Loans and integrate with platforms like Maruti Suzuki Smart Finance.

4. **Key Financial Metrics:** Q4FY26 PAT was ₹408 Cr (+40% QoQ). GNPA improved to 2.78%, NNPA to 0.98%. ROA reached 1.27% and ROE 12.69%. Annualized EPS for Q4FY26 was 43.

5. **Management Commentary / Outlook:** The bank emphasizes strengthening its financial position to create long-term value, driving excellence in core businesses (Rural, MSME, Retail) with underlying technology platforms, and fostering a performance-driven culture to accelerate book growth through digitalization and partnerships.