The smallcap lender, backed by Quant Mutual Fund, ended with a jump of almost 8% at Rs 188.50 on the NSE. The price action was accompanied by sharp volumes that were over 8.12 times higher than the BSE.Quant’s has a 3.90% stake in the lender through Quant Mutual Fund-Quant Mutual Small Cap Fund.
Shares of Karnataka Bank were under pressure and had fallen 6% in the last twelve months.
Karnataka Bank posted a net profit of Rs 319.12 crore for the quarter ended September 30, 2025, an improvement of 9.1% quarter-on-quarter compared to a net profit of Rs 292.40 crore in Q1FY26. For the half year ended September 2025, net profit stood at Rs 611.52 crores, compared to Rs 736.40 crores for the half year ended September 2024. Net interest income (NII) stood at Rs 728.12 crores. NPAs moderated during the quarter under review as GNPAs declined to 3.33% from 3.46% in June 2025, while NNPAs also declined to 1.35% from 1.44% as of June 2025.
The bank’s total operations stood at Rs 1,76,461.34 crore (on a gross basis) for Q2FY26, compared to Rs 1,77,509.19 crore in Q1FY26.
The Bank’s total deposits stood at Rs 1,02,817.19 crore in Q2FY26, compared to Rs 1,03,242.17 crore in Q1FY26. The Bank’s gross advances stood at Rs73,644.15 crore in Q2FY26, compared to Rs74,267.02 crore in Q1FY26, but there was a growth in the RAM (Retail, Agri & MSME) segment of the Bank. The Bank’s CD ratio (gross) was 71.63%.
The bank’s capital adequacy ratio stood at 20.84%, compared to 20.46% in June 2025. In line with the RBI’s revised draft guidelines on Liquidity Coverage Ratio (LCR), the bank has calculated the same as on September 30, 2025, at 188.16%.
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