The Karnataka Bank (KTKBANK) Q1 26/27 earnings summary

Executive summary

• Achieved highest ever aggregate business at INR 1,97,007 crore as of June 30, 2026, up 3% QoQ and 11% YoY, with gross advances at ₹86,610 crore (up 4% QoQ) and deposits at ₹1,10,396 crore (up 1% QoQ), reflecting strong operational progress and disciplined execution.

• Net Interest Income for Q1 FY 2027 rose 24.18% YoY to ₹938.29 crore; PAT increased 43.28% YoY to ₹418.95 crore; NIM improved to 3.20%.

• Asset quality improved with gross NPA at 2.58% (down 88 bps YoY), net NPA at 0.87% (down 57 bps YoY), and provision coverage ratio (excl. TWO) at 67.03%.

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

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved by the Board and reviewed by statutory auditors with an unmodified opinion.

Financial highlights

• Aggregate deposits reached INR 1,10,396 crore, up 1% QoQ and 7% YoY; CASA ratio at 32.42% (up 158 bps YoY).

• Operating profit rose 24.19% YoY to ₹580 crore; cost-to-income ratio at 53.15% for Q1FY27.

• Return on equity (ROE) at 12.48% (up 290 bps YoY); return on assets (ROA) at 1.29% (up 32 bps YoY).

• Liquidity coverage ratio (LCR) at 169%; CRAR at 21.10%, up 64 bps QoQ.

• Total income rose to ₹2,738.07 crore from ₹2,619.64 crore YoY; basic EPS for the quarter was ₹11.08.

Outlook and guidance

• Targeting 15% overall business growth, with 10–15% growth in liabilities and 15–20% in advances.

• ROA guidance raised to 1.35–1.40% for FY 2027, with continued improvement in NIM and profitability expected.

• Focus remains on RAM segment, especially gold, housing, car, education, and personal loans.

• CASA targeted at ~34%, NNPA between 0.6%-0.8%, NIM at 3%-3.4%.

• Branch expansion planned with 31–32 new branches in FY 2027.