KTKBANK
Micro CapThe Karnataka Bank Limited
Financial Services
Karnataka Bank is a private sector bank with a 100+ year legacy and pan-India presence (975 branches in 22 states). It focuses on retail, MSME, and rural segments, leveraging digital transformation and a diversified product portfolio to drive growth and enhance financial performance.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 25/100Rev -0% YoY · PAT +61% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,257 Cr | -0.0% | +1.7% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹408 Cr | +61.3% | +40.2% |
| PAT margin | 18.1% | +688 bps | +497 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Karnataka Bank reported strong Q4 FY26 results with PAT up 40% QoQ to Rs. 408 cr., driven by 8% QoQ gross advances growth and improved asset quality (GNPA 2.78%, NNPA 0.98%). NIM expanded to 3.07%, and ROA/ROE significantly improved.
The bank demonstrates robust sequential improvement across profitability, asset quality, and business growth, exceeding several internal targets. Management's focus on digital initiatives, core segments, and government business offers clear growth pathways. However, the significant increase in provisions YoY warrants scrutiny.
Gross Advances by Segment (Q4FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Retail Focus
Retail advances reached 51% of gross advances in FY26, up from 46% in FY20.
MSME & Rural Focus
MSME and Agri-Loans constitute 31.9% of the portfolio and are identified as key growth drivers.
Digitalisation & Partnerships
Scaling up Dairy Neo Banking loans on ULI, Fintech partnerships, and integration with Maruti Suzuki Smart Finance are key initiatives.
Government Business
Empaneled as 'Agency Bank' for Direct Tax, GST, Customs Duty, with EPFO and CGAS launches planned.
Retail Loan Processing Hubs
The bank has established 15 Retail Loan Processing and Sanctioning Centers (RLPSCs).
Business Correspondents
Onboarded 201 Business Correspondents (BCs) to strengthen the portfolio.
Agricultural Field Officers
Deployed 83 AFOs at branches & clusters to source quality agri proposals.
Technology Hub
Opened a 40,000 sq. ft. ‘Technology, Digital & Product Hub’ in Bengaluru with 300+ skilled employees.
Experienced Management
Strong management team with proven experience and leadership, strengthening the organization for the future.
Digital Transformation
Strategic implementation of digital projects aims to increase customer base, enhance satisfaction, and drive financial growth.
Diversified Offerings
Comprehensive product suite across Retail, MSME, and Agriculture, with a pipeline of new products.
Government Business Opportunities
Focused efforts to become a top government collection bank, with new services like EPFO and CGAS planned.
Standard Restructured Portfolio
The standard restructured portfolio was Rs. 806 cr. in Q4 FY26, with approximately 56% requiring a 30% recovery for upgradation.
Provisions Increase
Total provisions increased significantly to Rs. 90.34 cr. in Q4 FY26 from Rs. 31.08 cr. in Q4 FY25.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both QoQ and YoY comparisons are essential. QoQ highlights sequential momentum in business growth, asset quality improvement, and profitability, while YoY provides context for annual trends and the impact of strategic initiatives over a longer period.
AUM Growth (Gross Advances)
Gross Advances were Rs. 83,340 cr. in Q4FY26, recording an 8% QoQ growth.
Disbursements (Retail Sectoral Loans)
Retail Sectoral Loan Disbursement was Rs. 7,903 cr. in Q4FY26.
NIM
Net Interest Margin (NIM) was 3.07% in Q4FY26, an improvement of 15 bps QoQ.
Cost of Funds
Cost of Funds was 5.38% in Q4FY26, improving by 8 bps QoQ and 45 bps YoY.
Restructured Portfolio Recovery
Bank is focusing on recovering the 56% of the restructured portfolio that requires 30% recovery for upgradation.
Digital Lending Scale-up
Plans to scale up Dairy Neo Banking Loans on ULI and expand fintech partnerships.
New Product Launches
KBL Soulabhya Plus Deposit Scheme launched; Virtual account facility and Capital Gain account Scheme are in the pipeline.
Government Business Expansion
EPFO contributions and Capital Gains Accounts Scheme to be launched in Q1 FY26-27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| NNPA | 0.98% | Sustained levels below 1% and adherence to the 1%-1.2% target range. |
| NIM | 3.07% | Consistency and movement towards the 3%-3.3% target range. |
| Cost to Income Ratio | 50.47% (Q4FY26) | Continued efficiency improvements below the 53%-56% target range. |
| ROA | 1.27% | Sustained performance above the 1.1%-1.2% target range. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
60BullishSMA20 +26.4% / mo · near 52W high
Technical chart
KTKBANKdaily · 5Y+52.5%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 59. Wait for confirmation.
- SMA20 rising (~1.9% over last month) — short-term momentum positive.
- RSI(14) at 59 — rising, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 10.4%.
- Fair-value margin of safety is positive at 76.5%.
- Valuation contributes 28/30 to the score.
Main drags
- Altman Z is 1.8, in distress territory.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Balance sheet is weaker at 5/15; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 57th percentile of the scored universe and 75th percentile within Financial Services. Main check: financial discipline is weak at 48/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Altman Z is 1.79.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 75th pctile, median 62 · Micro: 40th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 9.9%.
- ▸4 years of positive FCF.
- ▸Debt/equity is 0.05.
Trust risks
- ▸Altman Z is 1.79.
- ▸ROCE is low at 6.1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 7.41
- P/B
- 0.73
- EV/EBITDA
- —
- Market Cap
- 9708.00Cr
Profitability
- ROE
- 10.40%
- ROCE
- 6.06%
- ROA
- 1.01%
- Dividend Y
- 1.95%
Growth (CAGR)
- Revenue 5Y
- 7.00%
- EPS 5Y
- 22.00%
- Revenue 3Y
- 7.00%
- EPS 3Y
- 4.00%
Balance Sheet
- Debt/Equity
- 0.05
- Interest Coverage
- —
- Altman Z
- 1.77
- Book Value
- 350.00
Cash Flow
- FCF Yield
- 10.42%
- FCF Positive Y
- 4/5
- OCF
- 1100.00 Cr
- EPS TTM
- 34.66
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 81%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.