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Karnataka Bank Q2 Profit Rises 37% as Bad-Loan Ratios Improve

NDTV Profit reported that pre-provision operating profit climbed 36.8% to ₹602.20 crore, while gross and net nonperforming-asset ratios fell from June.

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A customer enters Karnataka Bank’s headquarters in Mangaluru, India, on an overcast morning (AI-generated image / EconoTimes)
A customer enters Karnataka Bank’s headquarters in Mangaluru, India, on an overcast morning (AI-generated image / EconoTimes)

Karnataka Bank’s Q2 FY27 results filing lists consolidated net profit of ₹435.86 crore for the quarter ended Sept. 30, 2026. StockWatch calculated year-over-year growth at 36.54%, while NDTV Profit reported 36.6%; both figures round to about 37%. The bank’s unaudited filing also gives standalone profit as ₹435.89 crore.

The bank’s pre-provision operating profit reached ₹602.20 crore, 36.8% above the year-earlier quarter, NDTV Profit reported. The outlet also reported total income of ₹2,793.96 crore, compared with ₹2,522.58 crore a year earlier, and interest earned of ₹2,503.87 crore, up from ₹2,179.18 crore.

Provisions and contingencies totaled ₹14.74 crore, NDTV Profit reported. That was below both the ₹20 crore recorded a year earlier and the ₹28.7 crore in the June 2026 quarter.

NDTV Profit reported that gross nonperforming assets (NPA) were 2.27% of loans at Sept. 30, compared with 2.58% at June 30, 2026. Net NPA stood at 0.74%, down from 0.87% over the same period. Karnataka Bank’s Q2 FY26 press release reported gross and net NPA ratios of 3.33% and 1.35%, respectively, at Sept. 30, 2025.

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