Transcript of Q4FY26 Earnings Audio Conference Call
KTKBANK · price
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Karnataka Bank reported its highest-ever annual PAT of INR 1,310.50 crores for FY26, up 3% YoY, with Q4 PAT at INR 408.19 crores, a 62% increase from Q4FY25. The bank met or exceeded most of its FY26 guidance: total business stood at INR 192,118 crores (vs guidance of INR 192,000 crores), CASA ratio improved to 33.61% (vs 32-32.5% guidance), GNPA reduced to 2.78% (vs less than 3% guidance), and NIM for Q4 reached 3.07%. Cost-to-income improved significantly to 50.47% in Q4 from 58.72% in Q3. RAM segment (Retail, Agri, MSME) grew to INR 51,197 crores with Q4 growth of 4%. Management guided for FY27: business growth of 15%, advances growth of 15-20%, maintaining CASA above 33%, and cost-to-income of 52-53%.
Strong quarterly recovery with PAT up 62% YoY and margin improvement to 3%+ signals operational efficiency gains. Improved asset quality (GNPA at 2.78%) and PCR increase to 83.54% provide confidence. However, retail advances growth lagged corporate growth which management aims to correct. The stock could see positive sentiment given beat on multiple metrics.