Karnataka Bank Ltd. · NSE:KTKBANK
Karnataka Bank — The Karnataka Bank — Q2 FY26 Earnings Presentation
43 slides from Karnataka Bank's earnings presentation, Nov 8, 2025
Slide 1: Exchange filing cover letter for analyst presentation
Karnataka Bank Ltd. Your Family Bank, Across India Regd. & Head Office Phone : 0824-2228182 P. B. No.599, Mahaveera Circle E-Mail : comsec@ktkbank.com Kankanady Website :www.karnatakabank.bank.in Mangaluru – 575 002 CIN : L85110KA1924PLC001128 SECRETARIAL DEPARTMENT November 08, 2025 HO:SEC:223:2025
Slide 2: Investor Presentation Q2 FY26
INVESTOR PRESENTATION Q2 FY26 Banking with Legacy, Embracing the Future
Slide 3: Table of Contents
Table of Contents Independent Board and 01 Experienced Management Team 02 Financial Highlights Accelerating our Transformation 03 Journey 04 Our Strengths and Strategies
Slide 4: Key Parameters for Q2FY26
Key Parameters for Q2FY26 Managing transitions to achieve stability and sustainable growth… Deposits and Advances Profitability Metrics Asset Quality Gross Advances1 -0.8% INR cr. 74,267 cr. 73,644 cr. 0.8% 2,261 2,179 3.46% 3.33% (In Retail, Agri & MSME) 1,506 1,451 26,701 25,686 755 728 12,168 11,
Slide 5: Q2 FY26 Performance at a Glance
Q2 FY26 Performance at a Glance Q2FY26 INR cr. Assets Gross Advances Retail Advances1 Deposits CASA • To focus on granular advances 73,644 39,424 1,02,817 31,882 growth, there has been a reduction in the IBPC portfolio (0.8%) QoQ 0.3% QoQ (0.4%) QoQ 0.1% QoQ by Rs. 1,455 crores in Q2FY26. 0.8% QoQ I
Slide 6: Q2FY26 Performance at a Glance
Q2FY26 Performance at a Glance Profitability Gross Interest Income, Interest Expense and Net Interest Income (NII) for Q2 FY26 has decreased by 3.6% QoQ. As a result of decreased Interest Income, NIM declined to 2.72% in Q2FY26, down from 2.82% in Q1FY26. PAT for Q2FY26 stood at Rs. 319.12 Cro
Slide 7: Guided by an Independent Board
Guided by an Independent Board With no Shareholder Holding >5% Share Capital in the Bank P Pradeep Kumar Raghavendra S Bhat CA B R Ashok Part Time Chairman, Independent MD & CEO Non-Executive Director Director 38 years at Karnataka Bank Partner, M S K C & Associates Former MD, State Bank of India Ba
Slide 8: Experienced Management Team (1 / 2)
Experienced Management Team (1 / 2) Strengthening of Management, making the Organization Future Ready Raghavendra S Bhat Raja B. S. Chandra Shekar MD & CEO Chief Operating Officer (COO) Chief Business Officer (CBO) 38 years at Karnataka Bank 35 years at Karnataka Bank 30 years at Karnataka Bank Vina
Slide 9: Experienced Management Team (2 / 2)
Experienced Management Team (2 / 2) Strengthening of Management, making the Organization Future Ready Venkateswarlu Mallineni Vijayakumar P H Raghuram H S Chief Financial Officer Chief Risk Officer (CRO) Head – Liabilities & TPP 25 years at Karnataka Bank 31 years at Karnataka Bank 25 years experien
Slide 10: Financial Highlights
Financial Highlights Banking with Legacy, Embracing the Future
Slide 11: Financial Highlights: Profit and Loss Statement
Financial Highlights Profit and Loss Statement Particulars Q2FY26 Q1FY26 Q-o-Q % Q2FY25 Y-o-Y % Interest Income 2,179.18 2,261.28 -3.63% 2,234.13 -2.46% Interest Expense 1,451.06 1,505.68 -3.63% 1,400.57 3.60% Net Interest Income 728.12 755.60 -3.64% 833.56 -12.65% Other Income 343.37 358.36 -4.18%
Slide 12: Financial Highlights: Balance Sheet
Financial Highlights Balance Sheet Particulars As on 30-09-2025 As on 30-09-24 Y-o-Y % Property & Assets Cash & Balance With RBI 5,001.72 7,470.75 -33.0% Balance With Banks & Money At Call & 2,466.34 445.36 453.8% Short Notice Investments 26,599.09 21,460.28 23.9% Advances 72,152.55 73,952.28 -2.4%
Slide 13: Financial Highlights: Key Financial Ratios
Financial Highlights Key Financial Ratios Particulars Q2FY26 Q1FY26 Q-o-Q Q2FY25 Y-o-Y Gross NPA 3.33% 3.46% -13 bps 3.21% 12 bps Net NPA 1.35% 1.44% -9 bps 1.46% -11 bps CASA Ratio 31.01% 30.84% 17 bps 30.79% 22 bps NIM % 2.72% 2.82% -10 bps 3.23% -51 bps ROA 1.03% 0.97% 6 bps 1.13% -10 bps ROE 10.
Slide 14: Profitability
Profitability Operating Revenue (INR Cr.) 1 Other Income (INR Cr.) 4,618 4,580 1319 1270 4,178 993 277 151 97 283 124 126 87 65 428 48 358 343 270 25 292 52 11 69 32 77 1,103 1,085 1,209 1,114 1,071 18 21 40 29 31 41 39 796 831 896 28 192 205 288 241 204 -151 FY23 FY24 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q
Slide 15: Profitability
Profitability Net Interest Margin Non-Interest Income to Total Income 15.94% 3.70% 3.23% 13.71% 13.68% 13.61% 3.52% 12.09% 12.35% 3.02% 2.98% 11.53% 10.78% 3.19% 2.82% 2.72% FY23 FY24 FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 FY23 FY24 FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Return on Equity Return on
Slide 16: Liability Profile
Liability Profile Deposit Profile (INR Cr.) 1,04,807 99,881 1,00,028 1,04,807 1,03,242 1,02,817 97,988 26,187 26,187 25,925 25,782 25,112 24,993 24,619 7,094 5,763 5,678 7,094 5,910 6,100 6,181 66,695 71,526 69,125 69,731 71,526 71,407 70,935 FY24 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Term Cu
Slide 17: Advances
Advances Gross Advances Profile1 (INR Cr.) 77,959 75,316 77,860 77,959 73,002 74,267 73,644 61,303 27% 27% 28% 27% 24% 28% 26% 20% 23% 24% 23% 23% 23% 21% 26% 30% 46% 50% 49% 49% 50% 53% 53% 50% FY23 FY24 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Retail Mid Corporate Large Corporate 1 Retail and
Slide 18: Advances: Retail Sectoral Loan Disbursement
Advances Retail Sectoral Loan Disbursement (INR Cr.) Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Particulars Amount Amount Amount Amount Amount Retail 5,069 5,131 5,647 5,025 5,080 A. Agri 312 314 206 317 288 B. Gold 2,612 2,761 3,265 2,988 2,723 i. Gold (Agri) 2,178 2,259 2,533 1,893 1,472 ii. Gold (Non-Agr
Slide 19: Employee Strength
Employee Strength Employee Strength No. of Employees as on No. of Employees as on No. of Employees as on Cadre 31.03.2025 30.06.2025 30.09.2025 Male Female1 Total Male Female1 Total Male Female1 Total Executives 275 17 292 269 17 286 266 14 280 Officers 3,214 797 4,011 3,322 843 4,165 3,329 884 4,21
Slide 20: Asset Quality
Asset Quality GNPA & NNPA Provision Coverage (Incl. & excl. TWO) 3.74% 3.53% 80.86% 79.22% 81.42% 80.14% 80.64% 81.42% 81.11% 81.05% 3.08% 3.46% 56.21% 58.18% 56.03% 58.18% 59.18% 60.22% 3.21% 3.11% 3.08% 3.33% 55.50% 55.15% 1.70% 1.58% 1.31% 1.46% 1.39% 1.31% 1.44% 1.35% FY23 FY24 FY25 Q2 FY25 Q3 F
Slide 21: Asset Quality: Restructured Portfolio
Asset Quality Restructured Portfolio GNPA & Standard Restructured Assets (INR Cr.) Standard Restructured Portfolio (incl. Related Accounts) 7.9% 5.7% 4.4% 4.9% 4.5% 4.4% 4.7% 4.6% 3.6% Others 12.7% Personal Loans 11.6% MSME 4,864 2.2% Agriculture 3.9%LRD 4,157 0.4% Infra 3,397 3,683 3,533 3,397 3,45
Slide 22: Asset Quality: Movement of NPA
Asset Quality Movement of NPA Quarterly Annual Particular (INR Cr.) Q2FY26 Q1 FY26 Q2 FY25 FY 25 Opening Gross NPA 2,571.09 2,402.08 2,668.45 2,578.42 Additions 249.19 401.29 242.67 1,206.77 Sub Total ( A ) 2,820.28 2,803.37 2,911.12 3,785.19 Slippage ratio 0.35 0.53 0.33 1.71 Reduction Up-gradation
Slide 23: Asset Quality: Sector-wise Breakup Analysis
Asset Quality Sector-wise Breakup Analysis Non-Performing Assets Breakup (INR Cr.) Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Sectors NPA NPA% NPA NPA% NPA NPA% NPA NPA% NPA NPA% MSME 923 1.23% 955 1.23% 960 1.23% 1,065 1.43% 1,131 1.54% Agriculture 485 0.64% 492 0.63% 533 0.68% 577 0.78% 529 0.72% Hou
Slide 24: Efficiency Ratio
Efficiency Ratio Cost to Income Ratio Product Per Customer (PPC) 60.1% 68.98% 53.2% 60.09% 58.28% 58.05% 58.93% 1.22 1.22 47.1% 1.21 1.22 1.22 1.22 1.20 1.20 FY23 FY24 FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 FY23 FY24 FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Business per Employee (INR Cr.) Staff Cost
Slide 25: Key Ratios
Key Ratios Capital Adequacy Ratio Risk Weighted Assets (INR Cr.) 53.9% 53.9% 50.9% 54.8% 54.0% 50.9% 50.2% 49.5% 20.5% 20.8% 19.9% 19.9% 17.5% 18.0% 17.6% 17.6% 1.6% 1.5% 1.5% 1.5% 1.8% 1.7% 1.6% 62,533 61,543 63,634 63,228 61,543 59,849 3.3% 58,769 53,378 18.4% 18.4% 18.9% 19.3% 16.2% 15.9% 16.0% 1
Slide 26: Shareholder Value
Shareholder Value Shareholding Pattern EPS & Market Capitalisation 45.0 HUFs, LLPs & 10,000 Trusts, 2.2% Others, 0.4% Foreign 39.8 40.0 Institutions, 37.9 14.6% 35.0 8,000 33.7 33.5 31.0 30.0 7,897 Domestic 7,396 Institutions, 6,000 6,646 6,507 25.0 16.1% 20.0 Body 4,238 4,000 Indian Public, Corpora
Slide 27: Accelerating our Transformation Journey
Accelerating our Transformation Journey Banking with Legacy, Embracing the Future
Slide 28: Targeted Performance Improvement to Boost Returns
Targeted Performance Improvement to Boost Returns Cost to Income %: 53.0% - 56.0% Manage Operating Expenses NNPA: 1% - 1.2% Enhance Asset Quality ROA %: CASA %: 1.1% - 1.2% 30.0% - 32.0% Effective Capital Allocation Stable Source of Funding NIM %: 3% - 3.3% Consistent Interest Margins Cost of Funds:
Slide 29: Products
Products Building a Comprehensive Portfolio of Products Customer-centric approach for creating products Leverage Cross-sell & Up-sell opportunities Comprehensive product suite Pipeline of products for continuous growth Retail Agriculture MSME Retail loans Liability Products ADC Channels Agri Schemes
Slide 30: Digital and Technology: Digital Touchpoints
Digital and Technology Digital Touchpoints 39,35,023 6,79,021 56,49,785 Mobile App Installations Net Banking Users Debit Cards 1.17% QoQ (14.54%) QoQ 0.39% QoQ 1,36,574 1,488 QR related metrics ATM Networks 3.00% QoQ (0.40%) QoQ 29
Slide 31: Digital and Technology: Awards
Digital and Technology Awards CX Technology implementation of the year at the Best CX Digital Initiative of the Year at 6th edition of CX 21st CX Strategy Summit & Awards 2025 Excellence Awards 2025 30
Slide 32: Digital and Technology: Moving towards a Digital-First Bank
Digital and Technology Moving towards a Digital-First Bank Creating a disruptive ”Bank within a Bank” Our Objectives Infrastructure to Meet Our Objectives First-in-class digital factory Increase in Customer Base Products and Business Solutioning have been integrated into the Technology and Digital H
Slide 33: Digital and Technology: Scalable and Reliable Architecture
Digital and Technology Scalable and Reliable Architecture Embedding data & analytics in business processes for data-driven decision making Foundation of Architecture Integration with the Business Impact on the Business First-in-class scalable central data Retail Loan Propensity repository on cloud w
Slide 34: Digital and Technology: Analytics Factory
Digital and Technology Best in class Analytics Factory: 360day PitStop Business Dashboards Driving Agility and Precision in Decisions Business Systems ensuring New Insights have Rails for Outcomes Live – MCA NTB outreach Live – Insurance X-sell for campaigns FASTAG users CASA Balance Buildup Dashboa
Slide 35: Our Strengths and Strategies
Our Strengths and Strategies Banking with Legacy, Embracing the Future
Slide 36: Strategic Roadmap
Strategic Roadmap Creating a Strengthening Financial A Performance-Driven C Position to Create Culture Long-Term Value Delivering Excellence in Digitalisation and Core Businesses with Partnership to Underlying Technology Rebuild Outward-Facing, Accelerate Book Growth Transformative steps Platform le
Slide 37: Driving Excellence in Proven Core Competencies
Driving Excellence in Proven Core Competencies A. Consistent Emphasis on our Strength Areas Our Legacy Building on Our Legacy Tradition with Innovation 14 Mn Outbound Sales Culture Happy customers Startup-like Agility 100+ Year Legacy 35.0% 46.5% Capitalise on community network MSME and Ru
Slide 38: Diversified Offerings with Established Brand Equity
Driving Excellence in Proven Core Competencies A. Diversified Offerings with Established Brand Equity Retail and Personal Banking Agriculture Banking MSME Housing Agriculture & allied activities Working capital finance for traders & Loans against property Farm development manufacturing ind
Slide 39: Key Capabilities in Government Business
Driving Excellence in Proven Core Competencies A. Key Capabilities in Place to Leverage Opportunities in the Government Business Focused to be one of the top Govt. collection Banks Empaneled as 'Agency Bank’ for Direct Tax, Goods & Service Bank has tied up with Power Finance Corporation(PFC), Rural
Slide 40: Strong Geographical Footprint
Driving Excellence in Proven Core Competencies A. Strong Geographical Footprint Steady Growth in Locations Served 7 4 2 9 22 1 10 12 2 955 1,488 1 Branches ATM and Recyclers 3 17 7 20 5 Presence Across All Tiers 10 59 Top 5 States Rural 27 Karnataka 609 23.7% Metro 27.6% Maharashtra 59 7 45 609 Tota
Slide 41: Creating a Performance Driven Culture
Creating a Performance Driven Culture B. Rebuild Outward-Facing, Business-Centric Teams Outbound sales team and “Feet on the Street” for growing Inducted 300 Sales Officers and 132 Feet on Ground for liabilities and expanding the home loan book covering key markets and target segments Better control
Slide 42: Digitalisation Propelling Robust Book Growth
Digitalisation Propelling Robust Book Growth C. Foundation in place to Drive Next Leg of Digital Innovation Live with CRM: Integration of customer data and interactions across Marketing and Sales department State-of-the-art ‘Technology, Digital & Enhance customer engagement and improve Product H
Slide 43: Disclaimer
Disclaimer This presentation has been prepared by Karnataka Bank (the “Bank”) solely for providing information about the Bank. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner. This presentation has been prepared by the Bank based on informatio