The Karnataka Bank (KTKBANK) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 marked continued progress in strategic execution, focusing on retail, Agri, and MSME (RAM) growth, optimizing funding costs, and sustaining asset quality and profitability metrics.

• Achieved 5% QoQ growth in gross advances, reaching ₹77,283 crore, and 1% QoQ growth in deposits to ₹1,04,112 crore.

• Net Interest Income (NII) rose 8.8% QoQ, with Net Interest Margin (NIM) improving to 2.92% from 2.72% in Q2FY26.

• Profit After Tax (PAT) for Q3FY26 was ₹290.79 crore, down 8.9% QoQ but up 2.5% YoY.

• Digital initiatives expanded, including new mobile app UI/UX, supply chain finance, and enhanced analytics.

Financial highlights

• Aggregate business reached INR 181,394 crore as of Dec 31, 2025, up 3% QoQ.

• Standalone net profit for Q3 FY26 was ₹290.79 crore, up from ₹283.60 crore in Q3 FY25.

• Net interest income grew 8.8% QoQ to INR 792.06 crore; NIM improved to 2.92% from 2.72% in Q2.

• Operating profit before provisions for Q3 FY26 was ₹451.80 crore; provisions and contingencies for the quarter were ₹94.86 crore.

• CASA deposits grew 3% QoQ, now at 31.53% of total deposits.

Outlook and guidance

• Targeting advances of INR 85,000 crore by FY 2026 end, with business growth of 15% and advances growth of 15–20%.

• NIM expected to exceed 3% in Q4; ROA targeted at 1%+ by March, with further improvement to 1.1–1.3% over the next two years.

• Cost-to-income ratio expected to improve to 55–56% as income rises and cost controls persist.

• Targeting CASA ratio of 30–32%, NIM of 3–3.3%, NNPA of 1–1.2%, cost to income ratio of 53–56%, and ROA of 1.1–1.2%.

• Focus on consolidating financial position to enhance stakeholder value and return on equity.