The Karnataka Bank (KTKBANK) Q4 25/26 earnings summary

Executive summary

• Achieved highest-ever aggregate business at INR 1,92,119 crores as of March 31, 2026, up 6% sequentially, with gross advances up 8% QoQ to ₹83,340 crore and deposits up 4% QoQ to ₹1,08,779 crore.

• Net profit for Q4 FY26 rose 40% sequentially to INR 408.19 crores and 62% YoY; full-year PAT reached INR 1,310.50 crores, up 3% YoY.

• CASA ratio improved to 33.61%, with CASA deposits growing 11% QoQ.

• Focused on digital transformation, product innovation, and expanding retail, MSME, and agri lending.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved by the Board and received an unmodified audit opinion.

Financial highlights

• Net interest income for Q4 FY26 was INR 843 crores, up 6% QoQ and 8% YoY; operating profit before provisions for FY26 was Rs. 1,974.17 crore.

• Net interest margin improved to 3.07% in Q4 FY26 from 2.92% in Q3.

• Cost to income ratio for Q4 FY26 dropped to 50.47% from 58.72% in Q3; full-year ratio at 56.34%.

• Provision coverage ratio (PCR) excluding technical write-offs rose to 65.39%; including write-offs, PCR was 83.54%.

• Total income for FY26 stood at Rs. 10,320.72 crore, compared to Rs. 10,283.12 crore in FY25.

Outlook and guidance

• Business growth targeted at ~15%, with deposit growth of 10%-15% and advances growth of 15%-20%.

• CASA ratio to be maintained above 33%, NIM at 3%+, and CD ratio at 80%.

• ROA guidance remains at 1%+, with cost to income ratio expected to improve to 52%-53%.

• Ambitious recovery targets set for technical written-off book, aiming for 50% recovery.

• The Board recommended a final dividend of Rs. 5 per share for FY26, reflecting confidence in capital position and profitability.