Karnataka Bank Q1 Results | Net profit tanks 27% to ₹292 crore, NII drops 16%

Private sector lender Karnataka Bank Ltd on Tuesday (August 12) reported a 27% year-on-year (YoY) decline in net profit at ₹292 crore for the first quarter that ended June 30, 2025. In the corresponding quarter of the previous fiscal, Karnataka Bank posted a net profit of ₹400 crore.Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, fell 16.4%, coming at ₹755 crore against ₹903 crore in the corresponding quarter of FY25.

Gross non-performing assets (GNPA) stood at 3.46% in the June quarter against 3.08% in the March quarter. Net NPA came at 1.44% against 1.31% quarter-on-quarter.

Also Read: Karnataka Bank shares fall 7% after top brass quits citing personal reasonsThe bank reported that its aggregate business (gross) stood at ₹1,77,509.19 crore in Q1FY26, compared to ₹1,75,534.89 crore in Q1FY25, reflecting a YoY growth of 1.12%. Aggregate deposits rose 3.16% to ₹1,03,242.17 crore from ₹1,00,079.88 crore a year ago. Gross advances were at ₹74,267.02 crore, down from ₹75,455.01 crore in the same quarter last year.

The bank posted an operating profit of ₹467.29 crore. The capital adequacy ratio strengthened to 20.46% at the end of Q1FY26, compared to 17.64% in the same period last year.

The results came after the close of the market hours. Shares of Karnataka Bank Ltd ended marginally higher at ₹172.30 on the BSE today (August 12).

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