In a significant move that underscores faith in a private sector lender, Aditya Kumar Halwasiya, the Chairman and Managing Director of CUPID, has made a substantial additional investment in Karnataka Bank. Data from the National Stock Exchange (NSE) reveals that on Monday, November 24, Halwasiya purchased a fresh lot of 45 lakh shares worth approximately ₹90 crore in the bank, which is partly owned by Quant Mutual Fund.
A Series of Strategic Investments
This recent acquisition follows another major purchase made just last Friday, where the CMD executed a bulk deal to buy 38 lakh shares worth around ₹71 crore in the same banking institution. This back-to-back buying spree represents a total investment of over ₹160 crore in a matter of days, highlighting a deep-seated belief in the bank's future.
In an official release, the company stated that this fresh round of buying is being interpreted as a powerful endorsement of Karnataka Bank's ongoing turnaround and growth plan. This strategic plan focuses on several key areas, including strengthening the balance sheet, implementing crucial technology upgrades, and placing a heightened emphasis on profitability and governance. The follow-up purchase, in particular, signals a sizable commitment and alignment with the bank's projected medium-to long-term trajectory.
Bank's Performance and Institutional Backing
Halwasiya's major stake acquisition comes at a pivotal time for Karnataka Bank, as the institution actively works to revamp its business operations and fortify its financial health. The bank's efforts are centered on enhancing asset quality and rolling out key technological improvements.
It is noteworthy that Karnataka Bank has no promoter shareholding. Its ownership is distributed among various institutional investors. As of now, Quant Smallcap Fund holds a 3.9% stake, while Bandhan Mutual Fund owns 2.56%. Among insurance giants, HDFC Life Insurance has a 3.59% share, and LIC holds about 1.62% in the bank.
Market Reaction and Financial Health
The market has responded positively to these high-profile investments. On Tuesday, the Karnataka Bank share price surged as much as 1.43% to ₹201.50. This upward movement followed an even stronger rally of nearly 7% on Monday, directly after the news of Halwasiya's additional stake purchase broke.
Analyzing the share price trend reveals that the stock has been volatile amidst weak broader market sentiments. However, it has shown remarkable strength recently, jumping nearly 15% in the last five trading sessions and gaining over 10% in the past month. While the stock has dipped about 5% on a year-to-date (YTD) basis, it has been a phenomenal wealth creator for long-term investors, having surged an impressive 325% over the last five years.
The bank's financial fundamentals also show a positive trend. For the quarter ending September 2025 (Q2FY26), Karnataka Bank reported a net profit of ₹319.12 crore. This marks a 9.1% increase from the previous quarter (₹292.40 crore). The bank's net interest income for Q2FY26 stood at ₹728.12 crore.
Furthermore, asset quality continues to improve. The Gross Non-Performing Assets (NPAs) eased to 3.33% from 3.46% in the June 2025 quarter. Similarly, Net NPAs declined to 1.35% from 1.44% in the previous quarter, indicating a healthier loan book.
The bank's total business on a gross basis was ₹1,76,461.34 crore in Q2FY26, slightly lower than the preceding quarter. Total deposits were reported at ₹1,02,817.19 crore for the same period.
