Karnataka Bank released provisional business figures for the quarter ended September 30, 2026, showing robust growth. The bank’s gross advances surged 24.94% year-on-year to Rs 92,014 crore, while total deposits grew 11.98% to Rs 115,138 crore. Investors should note the improving CASA ratio on an annual basis, which supports the bank's operational momentum ahead of the detailed quarterly financial report.
Karnataka Bank Q2 FY27 Business Update
Gross Advances hit Rs 92,014.58 crore, reflecting a 24.94% year-on-year increase.
Total Deposits rose to Rs 115,138.05 crore, marking an 11.98% growth over the previous year.
Reader Takeaway: Strong double-digit growth in advances drives momentum, though sequential CASA ratio compression warrants monitoring in upcoming results.
What just happened
Karnataka Bank has released its provisional business figures for the second quarter ending September 30, 2026. The data highlights significant expansion across its core lending and deposit-gathering operations compared to the same period last year. These figures remain subject to a limited review by the bank's statutory auditors.
Why this matters
For retail investors, these provisional numbers serve as a leading indicator of the bank's performance for the quarter. The 24.94% growth in gross advances demonstrates an aggressive credit expansion strategy. A stable deposit base, growing at 11.98%, provides the necessary liquidity to support this lending growth. The CASA ratio, standing at 31.81%, remains a critical metric for understanding the bank's cost of funds.
Context metrics
- Total Deposits: Rs 115,138.05 crore (+11.98% YoY).
- CASA Deposits: Rs 36,626.38 crore (+14.88% YoY).
- CASA Ratio: 31.81% (compared to 31.01% in Q2 FY26).
What to track next
Investors should look for the full financial results, specifically focusing on Net Interest Margins (NIMs) and asset quality metrics like Gross and Net NPAs. The sequential dip in the CASA ratio from 32.42% in the previous quarter to 31.81% suggests a shift in deposit mix that will likely be addressed by management during the upcoming earnings call.