On the asset quality side, gross non-performing assets (NPAs) stood at Rs 1,706.57 crore as on 31 December 2020 as against Rs 2,188.80 crore as on 30 September 2020 and Rs 2,777.46 crore as on 31 December 2019. The ratio of gross NPAs to gross advances stood at 3.16% on 31 December 2020 as against 3.97% as on 30 September 2020 and 4.99% as on 31 December 2019. The ratio of net NPAs to net advances stood at 1.74% as on 31 December 2020 as against 2.21% as on 30 September 2020 and 3.75% as on 31 December 2019.

The bank's provisions and contingencies declined 32% to Rs 214.18 crore in Q3 December 2020 over Q3 December 2019. The bank as a prudent measure made an additional adhoc provision of Rs 50 crore during the quarter ended 31 December 2020. Thus the aggregate provision against the likely impact of COVID 19 including RBI mandated provision as on 31 December 2020 now stood at Rs 147.99 crore.

The bank's provision coverage ratio as of 31 December 2020 stood at 80.51% (as compared to 59.34% in 31 December 2019).

Karnataka Bank is a scheduled commercial bank.