Karnataka Bank Ltd. · NSE:KTKBANK
Karnataka Bank — Q2 FY27 Earnings Presentation
40 slides from Karnataka Bank's earnings presentation, Oct 28, 2026
Slide 1: Exchange filing cover letter
Karnataka Bank Ltd. Your Family Bank. Across India. Regd. & Head Office Phone : 0824-2228222 P. B. No.: 599, Mahaveera Circle E-Mail : [email protected] Kankanady Website : www.karnatakabank.bank.in Mangaluru – 575 002 CIN : L85110KA1924PLC001128 SECRETARIAL DEPARTMENT HO:SEC: 201:2026-27 Date: 28.
Slide 2: Investor Presentation Q2 FY27
INVESTOR PRESENTATION Q2 FY27 Banking with Legacy, Embracing the Future 1
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 Q2FY27
Key Parameters for Q2FY27 Managing transitions to achieve stability and sustainable growth… Deposits and Advances Profitability Metrics Asset Quality Gross Advances1 25% INR cr. 73,644 cr. 92,015 cr. 3.33% 19% 2,504 (In Retail, Agri & MSME) 2,179 2.27% 1,451 1,521 25,686 35,047 982 1.35% 728 11,359
Slide 5: Q2 FY27 Performance at a Glance
Q2 FY27 Performance at a Glance Q2FY27 INR cr. Assets Gross Advances Retail Advances1 Deposits CASA • The Bank’s Gross Advances 92,015 46,000 1,15,117 36,605 recorded a 6% QoQ growth, increasing from Rs. 86,610 cr. to 4% QoQ | 12% YoY 2% QoQ | 15% YoY 6% QoQ | 25% YoY 5% QoQ | 17% YoY Rs. 92,015 cr.
Slide 6: Guided by an Independent Board
Guided by an Independent Board With no Shareholder Holding >5% Share Capital in the Bank P Pradeep Kumar Biji S S Raghavendra S Bhat Executive Director (ED) Part Time Chairman, Independent MD & CEO Former Chief General Manager, South Director 39 years at Karnataka Bank Indian Bank Limited with over
Slide 7: Experienced Management Team
Experienced Management Team Strengthening of Management, making the Organization Future Ready Biji S S Chandra Shekar Raghavendra S Bhat Executive Director (ED) Chief Business Officer (CBO) MD & CEO Former Chief General Manager, South 31 years at Karnataka Bank 39 years at Karnataka Bank Indian Bank
Slide 8: Experienced Management Team
Experienced Management Team Strengthening of Management, making the Organization Future Ready Sham K Sreedhar S Basavaraj Desalli Company Secretary & Head - Credit Monitoring Head - Credit Sanctions Head – Operations 29 years at Karnataka Bank [Exposure upto Rs.15Crs.] Department 31 years at Karnata
Slide 9: Financial Highlights
Financial Highlights Banking with Legacy, Embracing the Future 8
Slide 10: Financial Highlights: Profit and Loss Statement
Financial Highlights Profit and Loss Statement Particulars Q2FY27 Q1FY27 Q-o-Q % Q2FY26 Y-o-Y % 2,503.87 2,382.65 5.09% 2179.18 14.90% Interest Income 1,521.43 1,444.36 5.34% 1451.06 4.85% Interest Expense Net Interest Income 982.44 938.29 4.71% 728.12 34.93% Other Income 290.09 355.42 -18.38% 343.3
Slide 11: Financial Highlights: Balance Sheet
Financial Highlights Balance Sheet Particulars As on 30-09-2026 As on 30-06-2026 Q-o-Q % Property & Assets Cash & Balance With RBI 4,681.29 4,552.46 2.83% Balance With Banks & Money At Call & 8.76% 1,057.14 972.03 Short Notice Investments 27,525.12 26,724.08 3.00% Advances 90,581.25 85,101.10 6.44%
Slide 12: Financial Highlights: Key Financial Ratios
Financial Highlights Key Financial Ratios Particulars Q2FY27 Q1FY27 Q-o-Q Q2FY26 Y-o-Y Gross NPA 2.27% 2.58% -31 bps 3.33% -106 bps Net NPA 0.74% 0.87% -13 bps 1.35% -61 bps CASA Ratio 31.80% 32.42% -62 bps 31.01% 79 bps NIM 3.17% 3.20% -3 bps 2.72% 45 bps ROA 1.26% 1.29% -3 bps 1.03% 23 bps ROE 12.
Slide 13: Profitability
Profitability Operating Revenue (INR Cr.) 1 Other Income (INR Cr.) 1403 4,618 4,580 4,522 1319 1270 190 277 151 149 97 124 120 137 78 399 355 343 302 66 1,242 1,294 1,273 69 13 48 290 1,071 1,094 31 43 27 37 27 43 24 7 37 35 33 840 902 927 206 197 283 256 207 FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q
Slide 14: Profitability
Profitability Net Interest Margin Non-Interest Income to Total Income 3.52% 3.20% 15.02% 3.17% 13.71% 13.59% 13.61% 3.19% 3.07% 12.35% 12.98% 11.98% 2.92% 10.38% 2.88% 2.72% FY24 FY25 FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 FY24 FY25 FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Return on Equity Return on
Slide 15: Provision
Provision Provision Break-up (INR Cr.) For the Quarter For the Half-Year Particulars Q2 FY 27 Q2 FY 26 Q1 FY 27 H1 FY 27 H1 FY 26 Provision for Non-Performing Advances 2.16 23.13 25.64 27.80 140.72 of which Accelerated Provision 7.52 25.58 - 7.52 45.28 Provision for Standard Advances 11.74 (8.13) 4.
Slide 16: Liability Profile
Liability Profile Deposit Profile (INR Cr.) 1,15,117 1,08,779 1,08,779 1,10,396 1,04,807 1,02,817 1,04,112 97,988 29,224 28,779 28,779 28,675 26,187 25,782 26,667 25,112 7,381 7,094 7,781 6,100 6,162 7,781 7,112 6,181 71,526 72,219 70,935 71,283 72,219 74,609 78,512 66,695 FY24 FY25 FY26 Q2 FY26 Q3
Slide 17: Advances Profile
Advances Profile Gross Advances Profile 1 (INR Cr.) 92,015 1 Retail and Corporate classifications done as per RBI definition Yield on Advances 9.94% 8.98% 9.47% 8.78% 8.76% 8.94% 8.71% 8.68% FY24 FY25 FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 16
Slide 18: Advances Disbursement
Advances Disbursement Retail Sectoral Loan Disbursement (INR Cr.) FY27 FY26 Particulars Q2FY27 Q1FY27 Q2FY26 Amount Amount Amount Retail 7,646 6,916 5,080 A. Agri 930 494 288 B. Gold 3,065 3,674 2,723 i. Gold (Agri) 2,031 2,378 1,472 ii. Gold (Non-Agri) 1,033 1,296 1,251 C. Retail Focused 1,618 1,34
Slide 19: Investments
Investments Investments [excl. RIDF] (INR Cr.) Portfolio Mix 26,599 26,753 26,739 26,724 27,525 19% AFS+HFT+FVTPL+SUB Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 81% HTM Adjusted Yield on Investment Modified Duration AFS+HFT+FVTPL HTM TOTAL 6.95% 6.80% 6.74% 6.50% 6.53% 4.61 4.59 4.59 Sep-25 Dec-25 Mar-26 Ju
Slide 20: Asset Quality
Asset Quality GNPA NNPA 3.53% 3.08% 2.78% 3.33% 3.32% 2.78% 2.58% 1.58% 2.27% 1.31% 0.98% 1.35% 1.31% 0.98% 0.87% 0.74% FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Slippage Ratio Recoveries (excluding upgraded accounts) (INR Cr.) 193
Slide 21: Asset Quality
Asset Quality Non-Performing Assets Breakup (% of Sector Portfolio) Sectors Sep-26 Jun-26 Mar-26 Dec-25 Sep-25 MSME 5.55% 6.65% 7.22% 7.85% 7.96% Agriculture 2.50% 3.08% 3.61% 4.53% 4.68% Housing 1.84% 1.92% 1.96% 2.35% 2.45% Infra 0.32% 0.34% 0.35% 0.42% 1.50% NBFC - - - - - Large enterprises 1.67%
Slide 22: Asset Quality: Movement of NPA
Asset Quality Movement of NPA Quarter ended Year ended Particular (INR Cr.) Q2FY27 Q1FY27 Q2FY26 Q4FY26 FY 26 Opening Gross NPA 2,233.25 2,320.93 2,571.09 2,565.31 2,402.08 Additions 95.71 113.71 249.19 147.59 1,131.35 Sub Total ( A ) 2,328.96 2,434.64 2,820.28 2,712.90 3,533.43 Slippage ratio (%) 0
Slide 23: Asset Quality: GNPA & Standard Restructured Assets
Asset Quality GNPA & Standard Restructured Assets (INR Cr.) Standard Restructured (incl. Related Accounts) 5.7% 4.4% 3.8% 4.6% 4.4% 3.8% 3.5% 3.0% Q1 FY27 Q2 FY27 MSME 9.8% MSME 8.9% Agriculture 2.5% Others 32.6% Agriculture 2.3% Others 36.3% 4,157 3,397 3,392 3,433 3,127 3,127 2,996 Infra 0.0% 2,74
Slide 24: Efficiency Ratio
Efficiency Ratio Cost to Income Ratio Product Per Customer (PPC) 58.93% 58.72% 1.241 60.11% 55.14% 52.68% 56.34% 50.47% 1.233 53.15% 1.224 1.222 1.224 1.217 1.216 1.202 FY24 FY25 FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 FY24 FY25 FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Business per Employee (INR Cr.)
Slide 25: Key Ratios
Key Ratios Capital Adequacy Ratio Risk Weighted Assets (INR Cr.) 20.8% 21.1% 20.4% 53.9% 50.9% 51.6% 49.5% 51.1% 51.6% 50.0% 51.2% 19.9% 20.1% 19.9% 20.1% 18.0% 1.5% 1.2% 1.2% 1.5% 1.5% 1.5% 1.4% 69,901 66,685 66,685 65,236 1.8% 62,533 61,543 58,769 61,463 18.4% 18.5% 19.3% 18.4% 18.7% 19.9% 19.2% 1
Slide 26: Employee Strength
Employee Strength Employee Strength No. of Employees as on No. of Employees as on Cadre 30.09.2026 30.06.2026 Male Female Total Male Female Total Executives 271 14 285 273 14 287 Officers 3270 935 4205 3256 896 4152 Customer Service Associates 1593 1555 3148 1606 1562 3168 Office Assistants & Housek
Slide 27: Shareholder Value
Shareholder Value Shareholding Pattern Market Capitalisation (INR Cr.) HUFs, LLPs & Trusts, Others Foreign Institutions 2.5% 0.4% 16.3% 12,475 10,340 7,897 8,435 7,771 8,435 Domestic Institutions 6,646 6,514 1.6% Mutual Funds Indian Public 52.5% 11.9% Insurance Companies Mar-24 Mar-25 Mar-26 Sep-25
Slide 28: Accelerating our Transformation Journey
Accelerating our Transformation Journey Banking with Legacy, Embracing the Future 27
Slide 29: Targeted Performance
Targeted Performance Cost to Income %: 52.0% - 55.0% Manage Operating Expenses NNPA: 0.6% - 0.8% Enhance Asset Quality ROA %: CASA %: 1.1% - 1.35% ~ 34.0% Effective Capital Allocation Stable Source of Funding NIM %: 3% - 3.4% Consistent Interest Margins CD Ratio 79.0% - 80.0% Consolidation of financ
Slide 30: 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 31: Digital and Technology: Digital Touchpoints
Digital and Technology Digital Touchpoints 33,35,944 7,22,305 55,24,985 Mobile App Installations Net Banking Users Debit Cards 1,53,804 1,460 QR related metrics ATM Networks 30
Slide 32: Pillars of Digital Initiatives - Overview
Digital and Technology Pillars of Digital Initiatives - Overview 1 2 3 4 5 Strategic Enterprise Leveraging AI Digitization Partnerships Transformation Data Acceleration Reengineering the tech Integrating AI into Transforming core Forging collaborative Activating data-driven stack for processes to dr
Slide 33: Pillars of Digital Initiatives – Projects in Focus
Digital and Technology Pillars of Digital Initiatives – Projects in Focus Future Focus In Focus (Projects in Progress) • Digitization of Gold Loans Digitization • Digital FD • CKYC based account opening – Live (Pilot) Strategic • Loan against Mutual Funds / Shares • Interest Bearing Credit Lines on
Slide 34: Digital and Technology: Awards
Digital and Technology Awards Karnataka Bank won the Digital Onboarding Excellence Award for it’s Bank won an award in the Digital Banking Leadership category onboarding journeys on Digital Current and Savings accounts at the at the BFSI Game Changer Awards Global Fintech Fest 2026 33
Slide 35: Our Strengths and Competencies
Our Strengths and Competencies Banking with Legacy, Embracing the Future 34
Slide 36: Driving Excellence in Proven Core Competencies
Driving Excellence in Proven Core Competencies 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 33.3% 46.62% ▪ Capitalise on community network ▪ MSME and Rura
Slide 37: Diversified Offerings with Established Brand Equity
Driving Excellence in Proven Core Competencies 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 indust
Slide 38: Key Capabilities in Government Business
Driving Excellence in Proven Core Competencies Key Capabilities in Place to Leverage Opportunities in the Government Business Focused to be one of the top Govt. collection Banks Central Government and Statutory Business State, Investor and Institutional Business Agency Bank Khajane-II (Karnataka) RB
Slide 39: Strong Geographical Footprint
Driving Excellence in Proven Core Competencies Strong Geographical Footprint Steady Growth in Locations Served 7 4 2 9 22 1 10 12 2 976 1,460 1 Branches ATM and Recyclers 3 17 7 20 5 Presence Across All Tiers 10 59 Top 5 States Rural 30 Karnataka 626 24.1% Metro 27.8% Maharashtra 59 7 45 626 Total T
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