Karnataka Bank Ltd. · NSE:KTKBANK
Karnataka Bank — The Karnataka Bank — Q1 FY26 Earnings Presentation
40 slides from Karnataka Bank's earnings presentation, Aug 12, 2025
Slide 1: Exchange filing cover letter for analyst presentation
Karnataka Bank Ltd. Your Family Bank, Across India Regd. & Head Office Phone : 0824-2228184 P. B. No.599, Mahaveera Circle E-Mail : comsec@ktkbank.com Kankanady Website : www.karnatakabank.com Mangaluru – 575 002 CIN : L85110KA1924PLC001128 SECRETARIAL DEPARTMENT August 12, 2025 HO:SEC: 136 :2025-26
Slide 2: Investor Presentation Q1 FY26
INVESTOR PRESENTATION Q1 FY26 Banking with Legacy, Embracing the Future
Slide 3: Table of Contents
Table of Contents 1 FOR SHAGUN 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 Q1FY26
Key Parameters for Q1FY26 lm Managing transitions to achieve stability and sustainable growth… Deposits and Advances Growth Profitability Metrics Asset Quality Gross Advances1 Growth: -1.6% INR cr. 75,455 74,267 Growth: 5.1% 2,278 2,261 3.54% 3.46% (In Retail, Agri & MSME) 1,375 1,506 30,216 26,701
Slide 5: Q1 FY26 Performance at a Glance
Q1 FY26 Performance at a Glance ■ Q1FY26 INR cr. Assets • To focus on granular advances Gross Advances Retail Advances1 Deposits CASA growth, there has been a churn in the IBPC portfolio by Rs. 540 74,267 39,310 1,03,242 31,835 crores. (4.7%) QoQ (1.5%) QoQ • The Bank’s CASA average was (4.3%) QoQ (
Slide 6: Q1FY26 Performance at a Glance
Q1FY26 Performance at a Glance Profitability Gross Interest Income for Q1 FY26 has grown marginally by 0.12% QoQ mainly on account of RBI repo rate cut. Interest Expense grew 1.89% over the same period owing competitive deposit pricing on account of tightening liquidity. Consequently, NII for
Slide 7: Experienced Management Team
Experienced Management Team… Strengthening of Management, making the Organization Future Ready Raghavendra S Bhat Vinaya Bhat P J Raja B. S. MD & CEO Head – Branch Banking Dept and Chief Compliance Officer (CCO) & 38 years at Karnataka Bank Operations Dept Principal Officer 28 years at Karnataka Ban
Slide 8: Guided by an Independent Board
…Guided by an Independent Board With no Shareholder Holding >5% Share Capital in the Bank P Pradeep Kumar Justice A V Chandrashekar CA Kalmanje Gururaj Acharya Part Time Chairman, Independent Independent Director Independent Director Director Former Judge, High Court of Senior Partner, M/s. K G Acha
Slide 9: Financial Highlights
Financial Highlights Banking with Legacy, Embracing the Future
Slide 10: Profit and Loss Statement
Financial Highlights Profit and Loss Statement Particulars Q1FY26 Q4FY25 Growth Q-o-Q Q1FY25 Growth Y-o-Y Interest Income 2,261.28 2,258.46 0.12% 2,277.99 -0.73% Interest Expense 1,505.68 1,477.78 1.89% 1,374.63 9.53% Net Interest Income 755.60 780.68 -3.21% 903.36 -16.36% Other Income 358.36 428.23
Slide 11: Balance Sheet
Financial Highlights Balance Sheet Particulars Q1FY26 FY25 Growth Q-o-Q Property & Assets Cash & Balance With RBI 7,956.36 7,525.73 5.7% Balance With Banks & Money At Call & 943.13 458.58 105.7% Short Notice Investments 25,523.05 24,536.51 4.0% Advances 72,727.15 76,541.48 -5.0% Fixed Assets 985.62
Slide 12: Key Financial Ratios
Financial Highlights Key Financial Ratios Particulars Q1FY26 Q4FY25 Growth Q-o-Q Q1FY25 Growth Y-o-Y Gross NPA 3.46% 3.08% 38 bps 3.54% -8 bps Net NPA 1.44% 1.31% 13 bps 1.66% -22 bps CASA Ratio 30.84% 31.75% -91 bps 30.51% 33 bps NIM % 2.82% 2.98% -16 bps 3.54% -72 bps ROA 0.97% 0.81% 16 bps 1.38%
Slide 13: 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 48 358 279 270 25 292 52 11 47 32 77 1,182 1,103 1,085 1,209 1,114 6 18 21 40 29 17 28 41 796 831 896 209 192 205 288 241 FY23 FY24 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25
Slide 14: Profitability
Profitability Net Interest Margin Non-Interest Income to Total Income 15.94% 3.70% 13.71% 13.68% 3.52% 3.54% 12.09% 12.35% 10.91% 11.53% 10.78% 3.19% 3.23% 3.02% 2.98% 2.82% FY23 FY24 FY25 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 FY23 FY24 FY25 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Return on Equity Return on
Slide 15: Liability Profile
Liability Profile Deposit Profile (INR Cr.) 1,04,807 1,00,080 99,881 1,00,028 1,04,807 1,03,242 97,988 26,187 26,187 25,925 25,112 24,918 24,993 24,619 7,094 5,612 5,763 5,678 7,094 5,910 6,181 I I I I I 66,695 71,526 I 69,550 69,125 69,731 71,526 71,407 I I I I I FY24 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q
Slide 16: Advances
Advances Gross Advances Profile1 (INR Cr.) 77,959 75,455 75,316 77,860 77,959 73,002 74,267 61,303 27% 29% 27% 28% 27% 24% 28% 20% 23% 24% 23% 23% 23% 26% 24% 30% 46% 50% 47% 49% 49% 50% 53% 50% FY23 FY24 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 ■ Retail ■ Mid Corporate ■ Large Corporate 1 Retai
Slide 17: Advances
Advances Retail Sectoral Loan Disbursement (INR Cr.) Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Particulars Amount Amount Amount Amount Amount Retail 4,798 5,069 5,131 5,647 5,025 A. Agri 229 312 314 206 317 B. Gold 2,613 2,612 2,761 3,265 2,988 i. Gold (Agri) 2,236 2,178 2,259 2,533 1,893 ii. Gold (Non-Agr
Slide 18: Asset Quality
Asset Quality GNPA & NNPA Provision Coverage (Incl. & excl. TWO) 3.74% 3.53% 80.86% 79.22% 81.42% 77.97% 80.14% 80.64% 81.42% 81.11% 3.08% 3.54% 3.46% 55.50% 56.21% 58.18% 55.15% 56.03% 58.18% 59.18% 3.21% 3.11% 3.08% 53.97% 1.70% . 1.58% • 1.31% 1.66% 1.46% 1.39% 1.31% 1.44% FY23 FY24 FY25 Q1 FY25
Slide 19: Asset Quality: Restructured Portfolio
Asset Quality Restructured Portfolio GNPA & Restructured Assets (INR Cr.) Standard Restructured Portfolio (incl. Related Accounts) -------- 7.9% 5.7% 4.4% 5.4% 4.9% 4.5% 4.4% 4.7% 14.7% 4.2% Others 14.6% Personal Loans 2.4% 4,864 MSME 4,157 4,063 Agriculture 3,397 3,683 3,533 3,397 3,459 4.2%LRD 2,2
Slide 20: Asset Quality: Movement of NPA
Asset Quality Movement of NPA Quarterly Annual Particular (INR Cr.) Q1FY26 Q4 FY25 Q1 FY25 FY 25 Opening Gross NPA 2,402.08 2,419.06 2,578.42 2,578.42 Additions 401.29 254.92 416.49 1,206.77 Sub Total ( A ) 2,803.37 2,673.98 2,994.91 3,785.19 Slippage ratio 0.53 0.34 0.59 1.71 Reduction Up-gradation
Slide 21: Asset Quality: Sector-wise Breakup Analysis
Asset Quality Sector-wise Breakup Analysis Non-Performing Assets Breakup (INR Cr.) Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Sectors NPA NPA% NPA NPA% NPA NPA% NPA NPA% NPA NPA% MSME 1,011 1.34% 923 1.23% 955 1.23% 960 1.23% 1,065 1.43% Agriculture 557 0.74% 485 0.64% 492 0.63% 533 0.68% 577 0.78% Hou
Slide 22: Efficiency Ratio
Efficiency Ratio Cost to Income Ratio Product Per Customer (PPC) 60.1% 68.98% 53.2% 60.09% 47.1% 58.28% 58.05% 1.22 1.22 1.22 52.76% 1.21 1.22 1.20 1.20 1.21 0 ~ FY23 FY24 FY25 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 FY23 FY24 FY25 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Business per Employee (INR Cr.) Staff
Slide 23: Key Ratios
Key Ratios Capital Adequacy Ratio Risk Weighted Assets (INR Cr.) 17.5% 18.0% 1.8% 19.9% 1.5% 17.6% 1.7% 17.6% 1.7% 17.6% 1.6% 19.9% 1.5% 20.5% 1.6% -------- 53.9% 53.9% 62,533 50.9% 61,543 54.9% 63,554 54.8% 63,634 54.0% 63,228 50.9% 61,543 50.2% 59,849 3.3% 53,378 18.4% 18.4% 18.9% 16.2% 15.9% 15.9
Slide 24: Shareholder Value
Shareholder Value Shareholding Pattern EPS & Market Capitalisation 45.0 10,000 39.8 40.0 Foreign 37.9 Others, 0.6% Institutions, 35.0 15.7% 8,000 33.7 31.0 30.0 7,897 7,396 6,000 6,646 25.0 Domestic Institutions, 17.0% 20.0 4,000 4,238 Indian Public, 15.5 15.0 59.3% Body 13.9 Corporate, 4.9% 1,899 9
Slide 25: Accelerating our Transformation Journey
Accelerating our Transformation Journey Banking with Legacy, Embracing the Future
Slide 26: 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 Fund
Slide 27: 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 C l ear Yo ur Pa th to S u ccess with Education Loan up t
Slide 28: Digital and Technology: Digital Touchpoints
Digital and Technology Digital Touchpoints c,fl,> 38,89,133 7,94,585 56,27,754 Mobile App Installations Net Banking Users Debit Cards 2.25% QoQ 1.57% QoQ 1.36% QoQ 1,32,590 1,494 QR related metrics ATM Networks 5.97% QoQ (1.45%) QoQ 27
Slide 29: 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 A 8-8 Increase in Customer Base ....-- -■- First-in-class digital factory Products and Business Solutioning have been -- ••• r.--. Enhanced Custo
Slide 30: 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 • u repository on clo
Slide 31: 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 DailyDashboard(PAN) DailyDashboard(Region) DailyDashboard(duster) DailyDashboard(Branch) PAN[l) REGION(
Slide 32: Our Strengths and Strategies
Our Strengths and Strategies Banking with Legacy, Embracing the Future
Slide 33: 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 34: 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 13.9 Mn Outbound Sales Culture Happy customers Startup-like Agility 100 Year Legacy 35.0% 46.4% Capitalise on community network ~ MSME a
Slide 35: 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 i
Slide 36: 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 Bank has tied up with PFC, REC, & IRFC for collection of 54EC Empaneled as 'Agency Bank’ for direct tax collection Ca
Slide 37: 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 2 953 1,494 1 Branches ATM and Recyclers 3 17 7 20 5 Presence Across All Tiers 10 59 Top 5 States Rural 27 Karnataka 607 23.6% Metro 27.7% Maharashtra 59 7 45 607 To
Slide 38: 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 261 Sales Officers and 126 Feet on Ground for liabilities and expanding the home loan book covering key markets and target segments Better contr
Slide 39: Digitalisation Propelling Robust Book Growth
C. Digitalisation Propelling Robust Book Growth □ 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
Slide 40: 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