However, net profit improved by 9.1 percent compared to the first quarter of 2025-2026. The bank had posted a net profit of ₹292.40 crore in the first quarter of 2025-26.
The bank’s board of directors, which met in Mangaluru on Saturday, approved the financial results for the quarter and half-year ended September 30, 2025.
Net profit stood at ₹611.52 crore for the half year ended September 2025, against ₹736.40 crore for H1 2024.
The bank’s net interest income (NII) stood at ₹728.12 crore during Q2 2025-26 (₹833.56 crore in Q2 2024-25), and other income stood at ₹343.37 crore (₹269.92 crore). The bank’s net interest margin fell to 2.72 percent in the second quarter of 2025-26 (3.23 percent).
While the bank’s gross NPA (non-performing assets) rose to 3.33 per cent in the second quarter of 2025-26 from 3.21 per cent in the corresponding quarter of the previous fiscal, the net NPA declined to 1.35 per cent in the second quarter of 2025-26 compared to 1.46 per cent in the second quarter of 2024-25.
Raghavendra S Bhat, Managing Director and Chief Executive Officer of the bank, said, “During the quarter, the bank witnessed a marginal quarter-on-quarter decline in revenue performance but achieved an improvement in asset quality. Our focus will continue to be on the RAM (retail, agri and MSME) segments, besides strengthening our low-cost deposit base. These efforts are expected to widen spreads and in turn improve NII.”
He said the bank is also actively working towards building a high-quality loan portfolio with initiatives at all levels aimed at minimizing slippages and recovering NPAs.
The bank’s Analytical Center of Excellence (ACoE) has been instrumental in driving data-driven transformation through the implementation of tools such as Retail Loan Propensity, Micro Market Analysis, Deposit Propensity, Primary Bank Index, Collection Prioritization and Behavior Scorecard. “These tools are integrated into our business processes, embedding analytics in decision-making and supporting predictive and strategic analytics use cases to improve efficiency and insight across the bank,” he said, adding: “Our mission and vision remain clear and steadfast as we continue to pursue our goals with renewed focus and energy.”
The bank’s total operations stood at ₹1,76,461.34 crore (on a gross basis) for the second quarter of 2025-26, compared to ₹1,75,196.93 crore in the second quarter of 2024-25. The bank’s total deposits stood at ₹1,02,817.19 crore in Q2 2025-26 (₹99,880.84 crore in Q2 2024-25), and gross advances stood at ₹73,644.15 crore (₹75,316.09 crore). The bank’s CD ratio (gross) was 71.63 percent.
The bank’s capital adequacy ratio stood at 20.84 percent (17.58 percent) in the second quarter of 2025-26.
In line with RBI’s revised draft guidelines on liquidity coverage ratio, the bank has calculated the same as on September 30, 2025, i.e. 188.16 percent, he said.
Published on November 8, 2025
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