Karnataka Bank Q1: Profit fell 27% and NII 16%, NPA increased

News Topical, Digital Desk : Karnataka Bank has presented its first quarter results. Both the company's profit and net interest income have seen a decline compared to last year. At the same time, the asset quality of the bank has also seen a decline and NPAs have increased on a quarter-on-quarter basis. The results were released after the market closed. In Tuesday's trading, the bank's stock closed with a slight increase at 172.30 on the BSE.

How were the results

The bank informed that its net profit in the first quarter ended June 30, 2025 declined year-on-year to Rs 292 crore, as against Rs 400 crore in the same period of the previous financial year. Net interest income, which is the difference between the interest income earned by the bank from loans disbursed and the interest paid to depositors, fell 16.4% to Rs 755 crore, as against Rs 903 crore in the same quarter of the previous year. The bank's gross non-performing assets stood at 3.46% in the June quarter, as against 3.08% in the March quarter. Net NPA stood at 1.44%, as against 1.31% in the previous quarter. According to the bank, its total business in Q1FY26 stood at Rs 1,77,509.19 crore, showing a year-on-year growth of 1.12% as compared to Rs 1,75,534.89 crore in Q1FY25. Total deposits grew by 3.16% to Rs 1,03,242.17 crore from Rs 1,00,079.88 crore a year ago. At the same time, gross advances stood at Rs 74,267.02 crore, down from Rs 75,455.01 crore in the same quarter last year. The bank's operating profit stood at Rs 467.29 crore. At the same time, Capital Adequacy Ratio reached 20.46% at the end of Q1FY26, as against 17.64% in the same period last year. 
 

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