The Karnataka Bank Limited (KTKBANK)
₹329.85 -1.82% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Karnataka Bank's net interest income was ₹938 Cr (+24.3% year on year, +11.3% on the previous quarter), and net profit ₹419 Cr (+43.5% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹938 | +24.3% | +11.3% |
| Operating profit | ₹581 | — | — |
| Net profit | ₹419 | +43.5% | +2.7% |
| EPS (₹) | 11.08 | +43.2% | +2.6% |
| Gross NPA | 2.58% | — | — |
KTKBANK delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 51.39% of the KTKBANK shares traded on NSE were taken to delivery, against the stock's own 20-session average of 54.87%. That is close to its usual level.
Delivery in the last 5 sessions: 58.4% · 55.6% · 47.3% · 55.8% · 51.4%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
The Karnataka Bank Limited submitted its half-yearly statement of debt securities issued on a private placement basis for the period ended September 30, 2026. The bank has one active debt issuance outstanding of ₹300.00 crore carrying a coupon rate of 10.70% p.a. payable annually. The non-convertible debentures were issued on March 30, 2022, and mature on March 30, 2032, with an embedded call option exercisable after five years subject to RBI approval. This routine regulatory filing represents standard half-yearly debt reporting under SEBI regulations.
- Total outstanding debt security amount is ₹300.00 crore against an issuance of ₹300.00 crore
- Coupon rate stands at 10.70% p.a. with annual interest payment frequency
- Maturity date is March 30, 2032, with an embedded call option after 5 years subject to RBI approval
- Issuance date was March 30, 2022 (ISIN INE614B08054)
The Karnataka Bank Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate issued by Registrar and Share Transfer Agent, Integrated Registry Management Services Private Limited, confirms that securities received for dematerialization were processed within 15 days. It further confirms that physical share certificates were duly mutilated and cancelled, and depository names were updated in the member register. This is a standard quarterly administrative filing with no financial or operational impact.
- Compliance certificate submitted under Regulation 74(5) for the quarter ended September 30, 2026
- RTA confirmed processing and dematerialization updates within the mandated 15 days window
- Certificate issued by RTA Integrated Registry Management Services Private Limited on October 6, 2026
Karnataka Bank reported its provisional business numbers for Q2 FY27 (quarter ended September 30, 2026). Gross advances grew strongly by 24.94% YoY (and 6.24% QoQ) to reach ₹92,014.58 crore. Total deposits expanded by 11.98% YoY (and 4.30% QoQ) to ₹115,138.05 crore, while CASA deposits rose 14.88% YoY to ₹36,626.38 crore. CASA ratio improved slightly by 80 bps YoY to 31.81%, though it dipped 61 bps sequentially from 32.42% in Q1.
- Gross advances increased 24.94% YoY to ₹92,014.58 crore from ₹73,644.15 crore
- Total deposits grew 11.98% YoY to ₹115,138.05 crore from ₹102,817.19 crore
- CASA deposits increased 14.88% YoY to ₹36,626.38 crore
- CASA ratio expanded 80 bps YoY to 31.81%, but slipped 61 bps QoQ from 32.42%
Karnataka Bank held its 102nd Annual General Meeting on September 22, 2026, where shareholders approved all seven ordinary and special resolutions. Key approvals include the formal declaration of a Rs 5.00 per share final dividend for FY 2025-26 and the adoption of audited financial statements. Shareholders also ratified key leadership appointments, including Mrs. Biji S S as Executive Director alongside independent director appointments and statutory auditors.
- Shareholders approved all 7 resolutions placed before the 102nd AGM held on September 22, 2026
- Final dividend of Rs 5.00 per equity share approved for the financial year ended March 31, 2026
- Approved appointment of Mrs. Biji S S as Executive Director of the Bank
- Appointed Dr. M. Aruna Shyam and Mr. Parthasarathi Periaswamy as Non-Executive Independent Directors
- M/s Batliboi & Purohit appointed as Joint Statutory Auditors of the Bank
Karnataka Bank announced that shareholders approved key board appointments at its 102nd Annual General Meeting held on September 22, 2026. Mrs. Biji Sreekrishnavilas Sankaranarayanan has been appointed as Executive Director for a 3-year term starting July 15, 2026. Additionally, Dr. M Aruna Shyam and former RBI CISO Mr. Parthasarathi Periaswamy were appointed as Non-Executive Independent Directors for 4 years each. Mr. Balebail Rajagopal Ashok was also re-appointed as Non-Executive Non-Independent Director through August 26, 2027.
- Shareholder approval secured at the 102nd AGM held on September 22, 2026
- Appointment of Mrs. Biji Sreekrishnavilas Sankaranarayanan as Executive Director for a 3-year term effective July 15, 2026
- Appointment of Dr. M Aruna Shyam as Non-Executive Independent Director for 4 years effective July 18, 2026
- Appointment of former RBI CISO Mr. Parthasarathi Periaswamy as Non-Executive Independent Director for 4 years effective July 29, 2026
- Re-appointment of Mr. Balebail Rajagopal Ashok (director since August 27, 2019) with tenure up to August 26, 2027
Karnataka Bank announced that shareholders at its 102nd AGM on September 22, 2026, approved the appointment of M/s. Batliboi & Purohit as Joint Statutory Auditors. The firm has been appointed for a 3-year term spanning from the 102nd AGM until the conclusion of the 105th AGM. They will serve alongside existing Joint Statutory Auditor M/s. R.G.N. Price & Co., whose tenure concludes at the 103rd AGM. The Reserve Bank of India had previously approved this appointment on August 11, 2026.
- Batliboi & Purohit appointed for a period of 3 years from the 102nd AGM to the 105th AGM
- Existing Joint Statutory Auditor R.G.N. Price & Co. to continue until the conclusion of the 103rd AGM
- RBI approval secured prior to AGM vide letter dated August 11, 2026
- Batliboi & Purohit brings over 42 years of audit experience with 15 partners and 155 professionals
The Karnataka Bank Limited has announced internal promotions elevating six officials from Assistant General Manager (AGM) to Deputy General Manager (DGM) cadre with effect from September 19, 2026. Consequent to their promotions, these six executives join the bank's Senior Management Personnel cadre under SEBI listing regulations. All promoted officials are long-tenured employees who joined the bank between 1996 and 2006, possessing domain expertise across credit, digital banking, and treasury. This is an internal administrative restructuring of operational roles and has no immediate financial impact on the bank.
- 6 officials elevated from Assistant General Manager to Deputy General Manager cadre
- Promotions effective from September 19, 2026
- Promoted executives joined the bank between 1996 and 2006, rising through internal cadres
- All 6 executives formally inducted into Senior Management Personnel under SEBI regulations
The Karnataka Bank Limited held group and one-on-one meetings with institutional investors and analysts on September 10 and September 11, 2026, in Mumbai. The meetings were organized by Ernst & Young LLP and ran between 10:00 AM and 05:00 PM on both days. A total of 12 institutions participated, including Nippon Mutual Fund, Motilal Oswal, Ambit, and Bandhan Mutual Fund. The bank confirmed that only publicly available information was discussed, with no unpublished price-sensitive information shared.
- Meetings conducted over two days on September 10, 2026, and September 11, 2026
- Meeting sessions scheduled from 10:00 AM to 05:00 PM on both days in Mumbai
- Interactions held across 12 institutions, including Ambit, PGIM, Nirmal Bang, Motilal Oswal, and Nippon Mutual Fund
- Only public domain presentation material was shared during the meetings
Karnataka Bank has received a notice for a one-day strike scheduled on September 11, 2026, called by AIKBEA and KBOO under the banner of UFBU. The strike demands a 5-day banking week and resolution of other pending issues. If it materializes, branch and office operations may face temporary disruption. The bank stated that it is taking measures to ensure normal operations, and the financial impact remains unquantifiable.
- AIKBEA and KBOO called for a 1-day strike on 11.09.2026 under UFBU
- Key demand raised is the implementation of a 5-day banking week and residual issues
- Branch and back-office operations may be temporarily affected if the strike occurs
- Expected quantum of loss or operational damages is not quantifiable
The Karnataka Bank Limited announced the allotment of 45,800 equity shares of face value Rs. 10 each on September 8, 2026. The shares were allotted following the exercise of vested stock options under the Karnataka Bank Employees Stock Option Scheme, 2023, with approval from the MD & CEO. With the bank's market cap at approximately Rs 12,579 Cr, the nominal value of this allotment (Rs 4.58 lakh) represents a negligible equity dilution. This is a standard corporate action resulting from employee compensation plans.
- Allotment of 45,800 equity shares approved on September 8, 2026
- Shares issued at a face value of Rs. 10 each
- Issued pursuant to Karnataka Bank Employees Stock Option Scheme, 2023
- Approved by the Managing Director & CEO
The Karnataka Bank Limited has announced the elevation of three Senior Management Personnel from Deputy General Manager (DGM) to the cadre of General Manager (GM) with effect from September 03, 2026. The promoted executives are Mr. Basavaraj Desalli (joined in 1995), Mr. Raghavendra C L (joined in 1999), and Mr. Gopalakrishna Samaga B. (joined in 1994). All three are long-tenured internal veterans with extensive banking operations and credit experience. This routine elevation supports internal leadership continuity and carries no direct financial impact.
- 3 Deputy General Managers elevated to General Manager cadre effective September 03, 2026
- Mr. Basavaraj Desalli promoted after serving the bank since December 18, 1995
- Mr. Raghavendra C L promoted after joining the institution on May 13, 1999
- Mr. Gopalakrishna Samaga B. elevated after serving the bank since July 01, 1994
The Karnataka Bank Limited has informed the exchanges that its top management will interact with analysts and institutional investors on September 10 and September 11, 2026. The group and one-on-one meetings are organized by Ernst & Young LLP and will be held in person in Mumbai from 10:00 AM to 05:00 PM. The bank confirmed that only information already in the public domain (including the Q1 FY2026-27 presentation) will be shared.
- Meeting dates scheduled for September 10, 2026, and September 11, 2026
- Meeting timings set from 10:00 AM to 05:00 PM at Dadar, Mumbai
- Format includes both group and one-on-one in-person sessions arranged by Ernst & Young LLP
- Discussion restricted strictly to information already in the public domain
Karnataka Bank has issued a compliance communication under Regulation 36(1)(b) of SEBI LODR, sending AGM and Annual Report web-links to shareholders without registered emails. The bank confirmed its 102nd Annual General Meeting for September 22, 2026, via video conferencing. A dividend of ₹5.00 per equity share (50% of face value) is scheduled for payment on or after September 29, 2026, with a record date of September 15, 2026. E-voting will take place from September 18 to September 21, 2026.
- Dividend recommended at ₹5.00 per equity share (50% of face value)
- Record date for dividend entitlement and e-voting cutoff is September 15, 2026
- 102nd Annual General Meeting scheduled for Tuesday, September 22, 2026 at 11:00 AM IST
- E-voting window open from September 18, 2026 (09:00 AM) to September 21, 2026 (05:00 PM)
- Dividend payment date slated for on or after Tuesday, September 29, 2026
The Karnataka Bank Limited has issued a dispatch communication to shareholders regarding its 102nd Annual General Meeting (AGM) scheduled for September 22, 2026. The bank confirmed a dividend of ₹5.00 per equity share (50% of face value) for FY 2025-26. The record date for dividend eligibility and cut-off for e-voting is set as Tuesday, September 15, 2026. Dividend payment will commence on or after September 29, 2026, subject to shareholder approval.
- 102nd Annual General Meeting scheduled on Tuesday, September 22, 2026 at 11:00 AM IST via VC/OAVM
- Dividend declared at ₹5.00 per equity share (50% of face value) for FY 2025-26
- Record date and e-voting cut-off date fixed for Tuesday, September 15, 2026
- E-voting window opens September 18, 2026 (09:00 AM) and closes September 21, 2026 (05:00 PM)
- Dividend payment scheduled on or after September 29, 2026
The Karnataka Bank Limited has issued the notice for its 102nd Annual General Meeting (AGM) scheduled for September 22, 2026. Key agenda items include adoption of FY26 financial statements and shareholder approval for a final dividend of ₹5.00 per share (face value ₹10). The bank is also seeking approval to appoint M/s Batliboi & Purohit as Joint Statutory Auditor for 3 years at a fixed FY27 fee of ₹1.60 crore. Key managerial appointments on the ballot include Mrs. Biji Sreekrishnavilas Sankaranarayanan as Executive Director for 3 years and Mr. Parthasarathi Periaswamy as Independent Director for 4 years.
- 102nd Annual General Meeting scheduled for September 22, 2026, at 11:00 AM IST via VC/OAVM
- Final dividend of ₹5.00 per equity share of face value ₹10 proposed for FY26
- Appointment of M/s Batliboi & Purohit as Joint Statutory Auditor for 3 years at an audit fee of ₹1.60 crore for FY27
- Shareholder approval sought for Executive Director appointment of Mrs. Biji Sreekrishnavilas Sankaranarayanan for 3 years from July 15, 2026
Financial Performance
Revenue Growth by Segment
Total income grew by 6.9% from INR 9,617 Cr in FY24 to INR 10,283 Cr in FY25. For Q1FY26, total income stood at INR 2,620 Cr. The bank is shifting focus toward the RAM (Retail, Agriculture, and MSME) segment to drive higher yields compared to large corporate exposures.
Geographic Revenue Split
Operations are highly concentrated in South India, with Karnataka alone accounting for 64% of branches, approximately 45% of total credit exposure, and 70% of total deposits as of March 31, 2025. The top three states contribute 70% of total credit exposure and 82% of deposits.
Profitability Margins
Net Interest Margin (NIM) is expected to expand by 15-20 bps in FY26 due to a calibrated shift toward high-margin RAM loans. PAT stood at INR 1,272 Cr for FY25 and INR 292 Cr for Q1FY26. Return on Assets (RoA) is being supported by low credit costs despite yield pressures.
EBITDA Margin
Not applicable for banking; however, the bank maintained a healthy RoA. Operating profit is being optimized by reducing dependence on low-yielding corporate and NBFC exposures, which previously suppressed NIM below the private sector bank average.
Capital Expenditure
The bank raised INR 1,500 Cr in equity capital during FY24 to support medium-term growth. Capital adequacy (CRAR) improved to 20.84% as of September 30, 2025, from 20.46% in June 2025, providing a strong buffer for expansion.
Credit Rating & Borrowing
ICRA maintains a 'Positive' outlook on long-term ratings. Borrowing costs are managed through a granular deposit franchise; liquidity remains strong with a Liquidity Coverage Ratio (LCR) of 200.72% as of June 30, 2025, well above the 100% regulatory requirement.
Operational Drivers
Raw Materials
The primary 'raw materials' for the bank are Deposits (INR 103,242 Cr as of June 30, 2025) and Equity Capital (INR 1,500 Cr raised in FY24).
Import Sources
Sourced domestically, primarily from Karnataka (70% of deposits) and other South Indian states.
Key Suppliers
Not applicable as a service-based financial institution; the 'suppliers' are the retail and corporate depositors.
Capacity Expansion
Current network consists of 953 branches and 1,494 ATMs/recyclers as of June 30, 2025. Expansion is focused on digital channels under the KBL VIKAAS 3.0 transformation journey.
Raw Material Costs
Cost of funds is a key driver; the bank is optimizing funding costs by replacing opportunistic IBPC advances with higher-yielding direct loans and leveraging its granular deposit base.
Manufacturing Efficiency
Not applicable; however, digital transformation initiatives are aimed at enhancing operational efficiency and customer experience.
Logistics & Distribution
Distribution is handled through 953 physical branches and digital platforms; South India accounts for 762 of these branches.
Strategic Growth
Growth Strategy
Growth will be achieved through 'Portfolio Rebalancing' toward RAM (Retail, Agri, MSME) sectors, which offer better yields. The bank is also executing KBL VIKAAS 3.0 for digital transformation and has appointed a veteran banker, Mr. Raghavendra Srinivas Bhat, as MD & CEO to lead this acceleration.
Products & Services
Housing loans, personal loans, auto loans, gold loans, MSME loans, agricultural finance, and corporate mid-market credit.
Brand Portfolio
Karnataka Bank (KBL), KBL VIKAAS 3.0 (Transformation program).
New Products/Services
Innovative digital products and platforms under development to enhance customer experience; specific revenue contribution % not disclosed.
Market Expansion
Focusing on mid-market corporates and selectively participating in higher-rated credit opportunities while expanding the retail footprint across India.
Market Share & Ranking
Identified as a medium-sized private sector bank with a total business of INR 1.77 lakh Cr as of June 30, 2025.
External Factors
Industry Trends
The Indian banking system is seeing record high CRAR (17.3% in March 2025) and robust profitability driven by improved asset quality. KTKBANK is positioning itself by shifting from large corporate lending to granular RAM segments.
Competitive Landscape
Competes with other private sector banks (PVBs) and public sector banks (PSBs). Historically, KTKBANK's NIM was lower than the PVB average due to corporate exposure, which it is now correcting.
Competitive Moat
The bank's moat is its 100-year legacy ('Banking with Legacy') and an established, granular deposit franchise in South India, which provides a stable and low-cost funding base.
Macro Economic Sensitivity
Sensitive to interest rate movements (repo rate) and liquidity conditions in the Indian economy. Banking sector GNPA declined to 2.3% in March 2025, showing a positive macro trend for asset quality.
Consumer Behavior
Increasing demand for digital banking and granular retail loans (housing, auto, gold) is driving the bank's shift toward the RAM segment.
Geopolitical Risks
Regional concentration in South India (79% of branches) makes the bank sensitive to local political and socio-economic shifts in that specific geography.
Regulatory & Governance
Industry Regulations
Governed by RBI's IRAC norms for asset classification and provisioning. Transitioning to the Expected Credit Loss (ECL) framework is a key monitorable for future capital and profitability impact.
Environmental Compliance
The bank has a Board-approved ESG policy and an ESG Committee of Executives to oversee implementation, focusing on sustainable finance in MSME and agriculture.
Legal Contingencies
Not disclosed in available documents with specific case values.
Risk Analysis
Key Uncertainties
Asset quality remains a monitorable with GNPA at 3.46% (June 2025) and a slippage ratio that rose to 2.12% in Q1FY26. Transition to ECL provisioning could impact capital cushions.
Geographic Concentration Risk
High concentration in Karnataka (64% of branches and 70% of deposits) and South India (79% of branches).
Technology Obsolescence Risk
The bank is mitigating technology risk through its KBL VIKAAS 3.0 digital transformation to ensure it remains competitive against digital-first banks.
Credit & Counterparty Risk
Top 20 exposures represent 121% of core capital, indicating high counterparty concentration risk, although exposures are to high-rated corporates.
