Whalesbook
Karnataka Bank Surges on Stellar Q4 Performance
Shares of Karnataka Bank surged up to 10% on Wednesday, driven by robust financial results for the January-March quarter of fiscal year 2026 (Q4FY26).
The stock opened with significant gains, climbing nearly 3% to ₹255.40 on the National Stock Exchange (NSE) before reaching an intraday peak of ₹271.40. This rally has brought Karnataka Bank's stock price close to its 52-week high of ₹275.30, achieved on May 4, 2026.
Outperformance Amidst Market Weakness
Karnataka Bank has shown remarkable performance compared to the broader market in 2026. Its shares have gained 27% year-to-date, a strong contrast to the benchmark Nifty 50 index, which has declined 9.7% in the same period. Over the past year, the stock has appreciated by 32%, while the NSE Nifty has fallen by 4.5%.
As of 1:10 PM IST, Karnataka Bank shares were trading 6.4% higher at ₹263.85, with approximately 17.5 million shares changing hands.
Key Financial Highlights
For the fourth quarter ending March 31, 2026, Karnataka Bank's net profit reached ₹408.19 crore, a 40% increase from ₹290.79 crore reported in Q3FY26. The bank's Net Interest Margin (NIM) improved to 3.07% in Q4FY26, up from 2.92% in Q3FY26.
Aggregate deposits grew by 4% quarter-on-quarter to ₹1,08,778.75 crore as of March 31, 2026. Current Account Savings Account (CASA) deposits also increased to ₹36,559.66 crore in the March quarter from ₹32,828.70 crore in Q3FY26. The CASA ratio stood at 33.61% at the end of March 2026, an improvement from 31.53% in December 2025.
Gross advances increased by 8% quarter-on-quarter to ₹83,339.92 crore, compared to ₹77,282.85 crore at the end of the third quarter.
Record Annual Performance and Dividend
Karnataka Bank reported record annual aggregate business of ₹1,92,118.67 crore for fiscal year 2026. The lender posted a record annual net profit of ₹1,310.50 crore for FY2025-26, a slight increase from ₹1,272.37 crore in FY2024-25.
The bank's board recommended a final dividend of ₹5 per equity share for the financial year ended March 31, 2026. This recommendation awaits shareholder approval at the upcoming Annual General Meeting (AGM). Details on the AGM, record date, and dividend payout will be announced later.