Slides
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1 INVESTOR PRESENTATION Q2 FY27 Banking with Legacy, Embracing the Future
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Independent Board and Experienced Management Team01 Financial Highlights02 Accelerating our Transformation Journey03 Our Strengths and Strategies04 Table of Contents
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Key Parameters for Q2FY27 Managing transitions to achieve stability and sustainable growth… 10.14% 12.51% 1.03% 1.26% Q2FY26 Q2FY27 ROE ROA Deposits and Advances 2,179 1,451 728 2,504 1,521 982 GII GIE NII GII GIE NII INR cr. 3.33% 2.27% 1.35% 0.74% Q2FY26 Q2FY27 GNPA NNPA Total Deposits 12% 3 Profitability Metrics Asset Quality Q2FY26 Q2FY27 60.22% 68.05% Q2FY26 Q2FY27 PCR (excl. TWO) 15% 10% CASA Retail Term Deposit 0.35% 0.11% Q2FY26 Q2FY27 Slippage GII – Gross Interest Income; GIE – Gross Interest Expense; NII – Net Interest Income Q2FY27 1,15,117 cr. Q2FY27 36,605 cr. Q2FY27 72,197 cr. Q2FY26 1,02,817 cr. Q2FY26 31,882 cr. Q2FY26 65,532 cr. Notes: 1. Retail, Agriculture and MSME classifications done as per internal classifications 2. Others include Mid & Large Corporates and Others Q2FY26 Q2FY27 Retail MSME Agriculture Others Gross Advances1 25% 92,015 cr.73,644 cr. 2 19% (In Retail, Agri & MSME) 22,351 11,359 14,248 25,686 26,329 14,031 16,608 35,047
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Q2 FY27 Performance at a Glance 4 • The Bank’s Gross Advances recorded a 6% QoQ growth, increasing from Rs. 86,610 cr. to Rs. 92,015 cr. • The Bank’s Retail Term Deposit (RTD) increased from Rs. 69,410 cr. to Rs. 72,197 cr. registering a 4% QoQ growth. • As of Q2 FY27, the Bank’s GNPA stood at 2.27%, reflecting an improvement of 31 bps QoQ, while the NNPA improved by 13 bps QoQ to 0.74%. • The Bank’s standard restructured portfolio declined to Rs. 649 cr. as of Q2 FY27, compared to Rs. 763 cr. in Q1 FY27, reflecting a 15% QoQ improvement. Assets Gross Advances 92,015 6% QoQ | 25% YoY Retail Advances1 46,000 5% QoQ | 17% YoY Deposits 1,15,117 4% QoQ | 12% YoY CASA 36,605 2% QoQ | 15% YoY Q2FY27 Profitability NIM 3.17% (3bps) QoQ | 45bps YoY PAT 436 ROA 1.26% ROE 12.51% Asset Quality GNPA 2.27% GNPA and Std Restructured % of Advances 2.98% NNPA 0.74% PCR (Excl. TWO) 68.05% 7% QoQ | 19% YoY In Retail, Agri & MSME 4% QoQ | 10% YoY In Retail Term Deposit Notes: 1. Retail classification done as per RBI definition INR cr. 4% QoQ | 37% YoY (3 bps) QoQ | 23bps YoY 3bps QoQ | 237bps YoY (31bps) QoQ | (106bps) YoY (48bps) QoQ | (163bps) YoY (13bps) QoQ | (61bps) YoY 102bps QoQ | 783bps YoY
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Guided by an Independent Board With no Shareholder Holding >5% Share Capital in the Bank 5 Independent Director Former ED, Oriental Bank of Commerce Balakrishna Alse S Non-Executive Director Chartered Accountant with over 40 years of experience CA B R Ashok Independent Director Former Partner, Grant Thornton; Founder ECube Investment Advisors Private Limited Harish H V Independent Director Senior Partner, M/s. K G Acharya & Co., Chartered Accountants CA Kalmanje Gururaj Acharya Part Time Chairman, Independent Director Former MD, State Bank of India P Pradeep Kumar Independent Director Former ED, Reserve Bank of India Uma Shankar Independent Director Former MD, State Bank of Travancore; Deputy MD, State Bank of India Jeevandas Narayan MD & CEO 39 years at Karnataka Bank Raghavendra S Bhat Executive Director (ED) Former Chief General Manager, South Indian Bank Limited with over 30 years of end-to-end banking experience Biji S S Independent Director Senior Advocate of the Honorable High Court of Karnataka Dr. M Aruna Shyam Independent Director Former Chief Information Security Officer and Chief General Manager (IT) at the Reserve Bank of India Parthasarathi Periaswamy
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Experienced Management Team Strong management with proven experience and leadership 6 Strengthening of Management, making the Organization Future Ready Chief Information Security Officer (CISO) 31 years at Karnataka Bank Kannan K Head Inspection & Audit (HIA) & Chief of Internal Vigilance (CIV) 29 years at Karnataka Bank Jayanagaraja Rao S Head – Retail, MSME, Wholesale & Mid-Corporate Banking] 31 years at Karnataka Bank Nagaraja Upadhyaya B Head – Training 40 years of experience in BFSI Ratheesh R Head - Credit Sanctions [Exposure above Rs.15Crs.] 32 years at Karnataka Bank Chandrashekara G Chief Financial Officer (CFO) 26 years at Karnataka Bank Vijayakumar P H HR & IR and IT & MIS 32 years at Karnataka Bank Raghuram H S Executive Director (ED) Former Chief General Manager, South Indian Bank Limited with over 30 years of end-to-end banking experience Biji S S Chief Business Officer (CBO) 31 years at Karnataka Bank Chandra Shekar MD & CEO 39 years at Karnataka Bank Raghavendra S Bhat Chief Compliance Officer (CCO) & Principal Officer 29 years at Karnataka Bank Vinaya Bhat P J Head - Treasury 24 years at Karnataka Bank Sunil Rao B
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Experienced Management Team Strong management with proven experience and leadership 7 Strengthening of Management, making the Organization Future Ready Branch Banking, Products, BSG, Liabilities Sales, TPP & Government Business 27 years at Karnataka Bank Raghavendra C L Legal & Recovery 32 years at Karnataka Bank Gopalakrishna Samaga B Company Secretary & Head – Operations Department 16 years of experience in BFSI Sham K Head - Credit Monitoring 29 years at Karnataka Bank Sreedhar S Head - Credit Sanctions [Exposure upto Rs.15Crs.] 31 years at Karnataka Bank Basavaraj Desalli
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8 Financial Highlights Banking with Legacy, Embracing the Future
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Financial Highlights Profit and Loss Statement 9 Particulars Amount in INR Cr. Interest Income Interest Expense Net Interest Income Other Income Total Income (Net of Interest Expense) Employee Expenses Other Expenses Total Operating Expenses Operating Profit Provisions Profit Before Tax (PBT) Tax Profit After Tax (PAT) Q2FY27 Q1FY27 Q-o-Q % Q2FY26 Y-o-Y % 2,503.87 2,382.65 5.09% 2179.18 14.90% 1,521.43 1,444.36 5.34% 1451.06 4.85% 982.44 938.29 4.71% 728.12 34.93% 290.09 355.42 -18.38% 343.37 -15.52% 1,272.53 1,293.71 -1.64% 1,071.49 18.76% 361.06 408.56 -11.63% 316.49 14.08% 309.25 304.81 1.46% 314.96 -1.81% 670.31 713.37 -6.04% 631.45 6.15% 602.22 580.34 3.77% 440.04 36.86% 14.74 28.70 -48.64% 20.08 -26.59% 587.48 551.64 6.50% 419.96 39.89% 151.59 132.69 14.24% 100.84 50.33% 435.89 418.95 4.04% 319.12 36.59%
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4,681.29 4,552.46 2.83% 1,057.14 972.03 8.76% 27,525.12 26,724.08 3.00% 90,581.25 85,101.10 6.44% 1,036.46 1,050.64 -1.35% 11,704.27 12,075.00 -3.07% 1,36,585.53 1,30,475.31 4.68% 378.40 378.21 0.05% 13,555.85 13,328.81 1.70% 1,15,117.15 1,10,396.41 4.28% 5,463.77 4,404.63 24.05% 2,070.36 1,967.25 5.24% 1,36,585.53 1,30,475.31 4.68% Property & Assets Cash & Balance With RBI Balance With Banks & Money At Call & Short Notice Investments Advances Fixed Assets Other Assets Total Capital and Surplus Capital Reserves & Surplus Deposits Borrowings Other Liabilities & Provisions Total Financial Highlights Balance Sheet 10 Particulars Amount in INR Cr. As on 30-09-2026 As on 30-06-2026 Q-o-Q %
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Financial Highlights Key Financial Ratios 11 Particulars Gross NPA CASA Ratio NIM ROA ROE PCR (Excl. TWO) Credit Cost CD Ratio Yield on Advances Cost of Deposits Cost of Funds CRAR Net NPA Q2FY27 Q1FY27 Q-o-Q Q2FY26 Y-o-Y 2.27% 2.58% -31 bps 3.33% -106 bps 0.74% 0.87% -13 bps 1.35% -61 bps 31.80% 32.42% -62 bps 31.01% 79 bps 3.17% 3.20% -3 bps 2.72% 45 bps 1.26% 1.29% -3 bps 1.03% 23 bps 12.51% 12.48% 3 bps 10.14% 237 bps 68.05% 67.03% 102 bps 60.22% 783 bps 85.78% 84.70% 108 bps 81.05% 473 bps 0.002% 0.03% -2.8 bps 0.03% -2.8 bps 79.93% 78.45% 148 bps 71.63% 830 bps 8.76% 8.68% 8 bps 8.98% -22 bps 5.13% 5.14% -1 bps 5.54% -41 bps 5.15% 5.16% -1 bps 5.58% -43 bps 20.36% 21.10% -74 bps 20.84% - 48 bps PCR (Incl. TWO)
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4,618 4,580 4,522 1,071 1,094 1,242 1,294 1,273 FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Profitability 12 Operating Revenue (INR Cr.) 1 Other Income (INR Cr.) Operating Profit (INR Cr.) 2,163 1,827 1,974 440 452 615 580 602 FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 65.6% Operating Profit Margin (% of NII) PAT (INR Cr.) 1,306 1,272 1,311 319 291 408 419 436 FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 39.6% PAT Margin (% of NII ) 840 902 927 206 197 283 256 207 78 120 137 37 35 37 24 33 124 97 149 31 27 13 27 7 277 151 190 69 43 66 48 43 1319 1270 1403 343 302 399 355 290 FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Fee Income Commission on Insurance & Mutual Fund Treasury Income Recovery from written off accounts 38.4%55.2% 43.8% 1 Operating Revenue = Total Income – Interest Expense 60.4% 48.4%73.0% 61.9% 44.7% 63.3% 42.0%57.0% 36.7%61.3% 44.4%
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Profitability 13 Net Interest Margin Return on Equity Return on Assets Non-Interest Income to Total Income 3.52% 3.19% 2.88% FY24 FY25 FY26 2.72% 2.92% 3.07% 3.20% 3.17% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 13.71% 11.10% 10.36% FY24 FY25 FY26 10.14% 9.06% 12.69% 12.48% 12.51% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 13.71% 12.35% 13.59% FY24 FY25 FY26 13.61% 11.98% 15.02% 12.98% 10.38% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 1.19% 1.05% 1.05% FY24 FY25 FY26 1.03% 0.92% 1.27% 1.29% 1.26% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27
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Provision 14 Provision Coverage (Incl. TWO) 79.22% 81.42% 83.54% FY24 FY25 FY26 81.05% 80.90% 83.54% 84.70% 85.78% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Provision Coverage (Excl. TWO) 56.21% 58.18% 65.39% FY24 FY25 FY26 60.22% 61.23% 65.39% 67.03% 68.05% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Particulars For the Quarter For the Half-Year 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) 4.07 15.81 (2.88) Provision for Others etc. 0.84 5.08 (1.01) (0.17) (6.96) Sub-total 14.74 20.08 28.70 43.44 130.88 Provision for Current/Deferred Tax 151.59 100.84 132.69 284.28 164.93 Total 166.33 120.92 161.39 327.72 295.81 Provision Break -up (INR Cr.)
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Liability Profile 15 Term Deposit Breakup 1 (INR Cr.) Notes: 1. Values exclude Inter bank term deposits 5.34% 5.62% 5.52% 5.54% 5.43% 5.37% 5.14% 5.13% FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 5.42% 5.67% 5.55% 5.58% 5.46% 5.38% 5.16% 5.15% FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 65,531 66,252 67,648 69,410 72,198 5,400 5,028 4,568 5,196 6,310 70,931 71,280 72,216 74,606 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Below 3 cr Above 3 cr Total 66,695 71,526 72,219 70,935 71,283 72,219 74,609 78,512 6,181 7,094 7,781 6,100 6,162 7,781 7,112 7,381 25,112 26,187 28,779 25,782 26,667 28,779 28,675 29,224 97,988 1,04,807 1,08,779 1,02,817 1,04,112 1,08,779 1,10,396 1,15,117 FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Term Current Savings Deposit Profile (INR Cr.) Cost of Deposits Cost of Funds 78,508
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Advances Profile 16 Gross Advances Profile 1 (INR Cr.) Yield on Advances 9.94% 9.47% 8.94% FY24 FY25 FY26 8.98% 8.71% 8.78% 8.68% 8.76% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 1 Retail and Corporate classifications done as per RBI definition 92,015
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Advances Disbursement 17 Retail Sectoral Loan Disbursement (INR Cr.) Particulars FY27 FY26 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 1,345 1,026 i. Housing Loans 833 666 531 ii. Car Loans 272 265 170 iii. Education 37 12 35 iv. Personal 30 31 30 v. Two-Wheeler 8 6 7 vi. Retail-Mortgage 420 344 226 vii. Retail-LRD 20 20 27 D. Retail-MSME 1,493 929 556 E. Retail Others 540 472 487
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Investments 18 Investments [excl. RIDF] (INR Cr.) 26,599 26,753 26,739 26,724 27,525 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 81% HTM 19% AFS+HFT+FVTPL+SUB Portfolio Mix Modified Duration AFS+HFT+FVTPL HTM TOTAL 4.61 4.59 4.59 6.95% 6.80% 6.74% 6.50% 6.53% Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Adjusted Yield on Investment
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Asset Quality 19 GNPA 3.53% 3.08% 2.78% FY24 FY25 FY26 3.33% 3.32% 2.78% 2.58% 2.27% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Slippage Ratio 2.80% 1.71% 1.50% FY24 FY25 FY26 0.35% 0.47% 0.20% 0.14% 0.11% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Recoveries (excluding upgraded accounts ) (INR Cr.) 193 114 150 74 110 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 NNPA 1.58% 1.31% 0.98% FY24 FY25 FY26 1.35% 1.31% 0.98% 0.87% 0.74% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27
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Asset Quality 20 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% 1.90% 2.28% 2.55% 2.97% Others 1.90% 1.91% 2.04% 2.44% 1.78% Total 2.27% 2.58% 2.78% 3.32% 3.33% Sector wise Size wise 34.2% Upto Rs 1 cr 23.3% Rs 1 cr to Rs 7.5 cr 29.8% Rs 7.5 cr to Rs 50 cr 12.7% Above Rs 50 cr GNPA Breakup MSME 43.5% Agriculture 16.8% Housing 11.1% Large Ent. 5.8% Others 22.3% Infra 0.5% GNPA INR 2,091 Cr.
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Particular (INR Cr.) Quarter ended Year ended 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 (%) 0.11 0.14 0.35 0.20 1.50 Reduction Up-gradation 52.68 60.89 117.45 114.61 460.05 Recoveries (excluding upgraded accounts) 109.66 74.25 193.25 150.46 565.17 Technical/ prudential Write Off 75.29 66.25 56.48 126.90 187.28 a. Technical written off 72.89 65.42 50.08 81.29 131.37 b. Other written off 2.40 0.83 6.40 45.61 55.91 Sub Total ( B ) 237.63 201.39 367.18 391.97 1,212.50 Closing Gross NPA (A-B) 2,091.33 2,233.25 2,453.10 2,320.93 2,320.93 21 Asset Quality Movement of NPA
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1,579 995 806 939 868 806 763 649 2,578 2,402 2,321 2,453 2,565 2,321 2,233 2,091 4,157 3,397 3,127 3,392 3,433 3,127 2,996 2,740 FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Standard Restructured GNPA Asset Quality 22 GNPA & Standard Restructured Assets (INR Cr.) Special Mention Account - 2 (INR Cr.) 5.7% % of Gross Advances 943 902 635 FY24 FY25 FY26 1100 947 635 753 617 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 * Approximately 51% of the restructured portfolio comprises loans that require a 30% recovery for upgradation. Bank is focusing on recovering the same, post which the same would be moved out of the restructured portfolio. 4.4% 4.6% 4.4% 3.8% Standard Restructured (incl. Related Accounts) Q2 FY27 MSME 8.9% Agriculture 2.3% Housing 56.2% Infra 0.0% Others 32.6% INR 649 Cr.* Special Mention Account Breakup Q2 FY27 MSME 27.8% Agriculture 9.1% Housing 31.2% Infra 0.09% NBFC 0% Large enterprises 3.0% Others 28.81% INR 2,469 Cr. 3.8% 3.5% INR 763 Cr. INR 3,435 Cr. 3.0% Q1 FY27 MSME 9.8% Agriculture 2.5% Housing 51.4% Infra 0.0% Others 36.3% Q1 FY27 MSME 29.6% Agriculture 7.2% Housing 26.3%Infra 0.07% NBFC 0% Large enterprises 1.3% Others 35.53%
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Efficiency Ratio 23 Cost to Income Ratio Business per Employee (INR Cr.) Staff Cost (INR Cr.) 19.2 20.9 21.2 FY24 FY25 FY26 19.3 19.8 21.2 22.0 23.1 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 1,373 1,538 1,298 FY24 FY25 FY26 316 361 280 409 361 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 1.202 1.217 1.224 FY24 FY25 FY26 Product Per Customer (PPC) 1.216 1.222 1.224 1.233 1.241 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 53.15% 60.11% 56.34% FY24 FY25 FY26 58.93% 58.72% 50.47% 55.14% 52.68% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27
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Key Ratios 24 Capital Adequacy Ratio Risk Weighted Assets (INR Cr.) LCR Credit Cost 16.2% 18.4% 18.5% 19.3% 18.4% 18.7% 19.9% 19.2% 1.8% 1.5% 1.5% 1.5% 1.5% 1.4% 1.2% 1.2%18.0% 19.9% 20.1% 20.8% 19.9% 20.1% 21.1% 20.4% FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Tier 1 Tier 2 CRAR 62,533 61,543 66,685 58,769 61,463 66,685 65,236 69,901 FY24 FY25 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 53.9% RWA/Total Assets 212.3% 162.5% 165.3% FY24 FY25 FY26 188.2% 186.8% 165.3% 169.0% 164.0% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 0.84% 0.37% 0.38% FY24 FY25 FY26 0.03% 0.11% 0.10% 0.03% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 50.9% 49.5% 51.1% 51.6% 51.6% 50.0% 51.2% 0.002%
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Employee Strength 25 Employee Strength Cadre No. of Employees as on 30.09.2026 No. of Employees as on 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 & Housekeepers 891 454 1345 896 459 1355 Total No. of Employees 6025 2958 8983 6031 2931 8962
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Foreign Institutions 16.3% Domestic Institutions 1.6% Mutual Funds 11.9% Insurance Companies 5.2% Body Corporate 7.2% NRIs 2.5% Indian Public 52.5% HUFs, LLPs & Trusts, 2.5% Others 0.4% Shareholder Value 26 Shareholding Pattern Market Capitalisation (INR Cr.) 7,897 6,646 8,435 6,514 7,771 8,435 10,340 12,475 Mar-24 Mar-25 Mar-26 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 40 34 35 FY24 FY25 FY26 Earnings Per Share (EPS)* Book Value Per Share (BVPS ) 34 31 43 44 46 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 288 320 350 Mar-24 Mar-25 Mar-26 333 341 350 362 368 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 * Annualized
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27 Banking with Legacy, Embracing the Future Accelerating our Transformation Journey
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Targeted Performance Consolidation of financial position to build stakeholder value and enhanced return on equity CD Ratio 79.0% - 80.0% Optimize Mix NIM %: 3% - 3.4% Consistent Interest Margins Cost to Income %: 52.0% - 55.0% Manage Operating Expenses ROA %: 1.1% - 1.35% Effective Capital Allocation NNPA: 0.6% - 0.8% Enhance Asset Quality CASA %: ~ 34.0% Stable Source of Funding 28
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Products 29 Building a Comprehensive Portfolio of Products Customer-centric approach for creating products Comprehensive product suite Leverage Cross-sell & Up-sell opportunities Pipeline of products for continuous growth MSMEAgricultureRetail MSME Products Products launched: ▪GST OD ▪LAP for MSME ▪Dropline OD for MSME In Pipeline: ▪Incorporation of dropline OD features to key MS ME products ▪End to end digitization of key MSME products Retail loans Products launched: •Xpress Digi Gold Loan (XDGL) •Up to 90% funding on Project cost for Purchase of Ready built/ under construction residential units. In Pipeline: • Limit Enhancement in Housing Loan schemes • Surrogate based lending for Housing & Mortgage loans. • Digital Document execution for vehicle loans • End to End Portal for Channel Partners Liability Products ▪ Capital Gain account scheme: ▪ A specialized account scheme to park capital gain funds to claim tax exemption. Project in Pipeline ▪ Launch of Marketplace FD ADC Channels UPI Help (MyUPI): Unified platform enables customers to view transaction history, raise and track complaints, manage UPI mandates etc. Pin-less CBDC Transactions: Customer's can carry out CBDC transactions upto ₹ 500/- per transaction without PIN offering hassle free experience. Project in Pipeline ▪ Revamp of retail IB with new UI/UX ▪ UPI Global: UPI for global customers ▪ UPI for NRI customers ▪ Soulabhya Plus Deposit enablement through Digital Channels. Agri Schemes Agriculture We are actively exploring the introduction of "Input Finance" and other agricultural credit products across various crops covered under their respective Boards (Spices Board, Coffee Board, Tobacco Board, Tea Board , Rubber Board etc.), supported by structured repayment arrangements. This is expected to enhance the Bank’s core agriculture portfolio, increase SMF advances, and ensure assured repayment and recovery through Board-supported payment mechanisms.
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Digital and Technology Digital Touchpoints 33,35,944 Mobile App Installations 1,53,804 QR related metrics 7,22,305 Net Banking Users 55,24,985 Debit Cards 1,460 ATM Networks 30
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Digital and Technology Pillars of Digital Initiatives - Overview 31 Digitization 1 Strategic Partnerships 2 Enterprise Transformation 3 Leveraging Data 4 AI Acceleration 5 Transforming core workflows for seamless delivery and limitless scale Forging collaborative partnerships for rapid market integration and volume growth Reengineering the tech stack for sustained processing and continuous scalability Activating data-driven intelligence to expand market reach Integrating AI into processes to drive efficiency and augment productivity
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Digital and Technology Pillars of Digital Initiatives – Projects in Focus 32 Digitization • Digitization of Gold Loans • CKYC based account opening – Live (Pilot) • Digital FD Strategic Partnership • Interest Bearing Credit Lines on UPI • Loan against Mutual Funds / Shares • Secured Credit Cards Enterprise Transformation • SD-WAN implementation • Paycorp NACH automated solution • NRI OTP implementation • Implementation of DPDP solution • New Treasury Application • New NPA Solution • DevSecOps Implementation • HRMS Revamp Leveraging Data • CDP (Common Data Platform) • Mule Hunter • Click to call - Sales CRM AI Acceleration • Sales Buddy (AI assistant) • Voice bot for Sales - Live (Pilot) • Accelerated Devops with AI • Voice bot for Collections • AI enabled SIEM • WhatsApp Banking – Insurance, FD In Focus Future Focus (Projects in Progress)
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Digital and Technology Awards 33 Karnataka Bank won the Digital Onboarding Excellence Award for it’s onboarding journeys on Digital Current and Savings accounts at the Global Fintech Fest 2026 Bank won an award in the Digital Banking Leadership category at the BFSI Game Changer Awards
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34 Banking with Legacy, Embracing the Future Our Strengths and Competencies
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Driving Excellence in Proven Core Competencies Consistent Emphasis on our Strength Areas ▪ Tradition with Innovation ▪ Outbound Sales Culture ▪ Startup-like Agility ▪ Capitalise on community network ▪ MSME and Rural to be key growth drivers ▪ Enhanced RoA and RoE ▪ Focus on Retail ▪ Wider Geographical Presence ▪ Digital and Data-driven client acquisition ▪ Cross Selling Retail Focus Bharat Ka Karnataka Bank MSME & Rural Focus 100+ Year Legacy Increase in % of Retail Advances from FY20 to Q2FY27 46% 4%2 Market share in Karnataka 33.3% Share of MSME & Agri-Loans 14 Mn Happy customers 50%1 22 States Pan-India presence 46.62% Branches in Rural & Semi-Urban Areas 2 By share of Deposits as on Jun 2026 Building on Our LegacyOur Legacy 35 1 Retail classifications done as per RBI definition
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Driving Excellence in Proven Core Competencies Diversified Offerings with Established Brand Equity Retail and Personal Banking ▪ Housing ▪ Loans against property ▪ Gold ▪ Vehicle ▪ Education ▪ Personal loans Simple & smarter digital loans Dedicated RLPSCs / branch network Immediate in- principle sanction Centralized processing Services MSME ▪ Working capital finance for traders & manufacturing industries ▪ Term loans & infrastructure finance ▪ Business development loans ▪ Corporate loans ▪ Professional & self-employed loans ▪ CV / CE loans Loans to women entrepreneurs Segment Focused Loans GST Based Loans Quick digital underwriting Facilities Agriculture Banking ▪ Agriculture & allied activities ▪ Farm development ▪ Agricultural land purchase ▪ Farm mechanization ▪ Hi-tech agriculture ▪ Agricultural infrastructure & ancillary Farm machinery/ vehicle loans Agri Development Branches (ADBs) Rural godown loans Dedicated technical experts (AFOs) Facilities 36
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Driving Excellence in Proven Core Competencies Key Capabilities in Place to Leverage Opportunities in the Government Business Direct Tax Live with Direct Tax Collection by offering various payment methods like Over the Counter(OTC) and Internet Banking. Capital Gain Bonds (u/s 85 of IT act 2025) Bank has tied up with Power Finance Corporation(PFC), Rural Electrification Corporation(REC), Indian Railway Finance Corporation(IRFC) & Housing and Urban Development Corporation (HUDCO) for issuance of Capital Gain Bonds. Agency Bank RBI authorised as 'Agency Bank’ for collection of Direct Tax, Goods & Service Tax(GST) and Customs Duty. EPFO Live With Employees Provident Fund Organization platform for collection of EPFO contributions. Flexi FD Flexi Fixed Deposits scheme for Government Departments & allied institutions and RERA Project Accounts. Customs Duty Live with Customs Duty Collection through Internet Banking. KPPP e-BG + RBI CBDC Live on Karnataka Public Procurement Portal (e-BG) and on RBI's Digital Rupee pilot. GST Live with GST Collection by offering various payment methods like OTC, Internet Banking and Unified Payment Interface(UPI). 37 Marching towards "one-stop" digital solution for all statutory payments Focused to be one of the top Govt. collection Banks CGAS Live with Capital Gains Accounts Scheme option for investors to claim tax exemption. Khajane-II (Karnataka) Live on Khajane 2 e-receipts for state revenue collection Public Sector Undertakings Live with Virtual Account - extended to facilitate rent collection as well as the collection of application fees and Earnest Money Deposits (EMD) for key State Government accounts. Central Government and Statutory Business State, Investor and Institutional Business
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Driving Excellence in Proven Core Competencies Strong Geographical Footprint 30 45626 1 55 21 7 7 29 4 1210 17 7 59 5 10 3 20 1 1 22 2 Top 5 States Karnataka 626 Maharashtra 59 Tamil Nadu 55 Andhra Pradesh 45 Telangana 30 38 976 Branches 1,460 ATM and Recyclers Metro 27.8% Urban 25.6% Semi Urban 22.5% Rural 24.1% Total branches 976 Steady Growth in Locations Served Presence Across All Tiers
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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 information and data which the Bank considers reliable, but the Bank makes no representation or warranty or undertaking, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness, correctness and reasonableness of the contents of this presentation. This presentation has not been approved and will not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India and may not comply with all the disclosure requirements prescribed thereof. This presentation may not be all inclusive and may not contain all of the information that you may consider material. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. Any liability in respect of the contents of, or any omission from, this presentation is expressly excluded. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. Neither the Bank nor any of its respective affiliates, advisers or representatives, shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements”, including those relating to the Bank’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ from these forward-looking statements due to a number of factors, including future changes or developments in the Bank’s business, its competitive environment, information technology and political, economic, legal and social conditions in India and worldwide. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Bank disclaims no obligation to update forward looking statements to reflect events or circumstances after the date thereof. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation and any information presented herein are not intended to be, offers to sell or solicitation of offers to buy the Bank’s equity shares or any of its other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Bank’s equity shares have not been and will not be registered under the U.S. Securities Act 1993, as amended (the Securities Act”) or any securities laws in the United States and, as such, may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as such term is defined in Regulation S under the Securities Act) absent registration or an exemption from the registration requirements of the Securities Act and applicable laws. Any offering of the equity shares made, if any, in the United States (or to U.S. persons) was made by means of a prospectus and private placement memorandum which contained detailed information about the Bank and its management, as well as financial statements. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person. 39