1. We have jointly audited the accompanying Standalone
Financial Statements of The Karnataka Bank Limited
("the Bank") which comprise the Balance Sheet as at March
31, 2025, the Statement of Profit and Loss Account and
the Statement of Cash Flows for the year then ended, and
notes to the Standalone Financial Statements including
a summary of significant accounting policies and other
explanatory information.

In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Standalone Financial Statements give the information
required by the Banking Regulation Act, 1949 and the
circulars and guidelines issued by the Reserve Bank of
India (the "RBI") from time to time, as applicable (the "RBI
Guidelines") and the Companies Act, 2013 as amended ("the
Act") in the manner so required for banking companies and
give a true and fair view in conformity with the Accounting
Standards prescribed under section 133 of the Act read
with Companies (Accounting Standards) Rules, 2021 and
other accounting principles generally accepted in India, of
the state of affairs of the Bank as at March 31,2025 and its
profit and its cash flows for the year ended on that date.

Basis for Opinion

2. We conducted our audit in accordance with the Standards
on Auditing ("SAs") specified under section 143(10) of the
Act. Our responsibilities under those Standards are further
described in the 'Auditors' Responsibilities for the Audit of the
Standalone Financial Statements' section of our report. We
are independent of the Bank in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants
of India (ICAI) together with ethical requirements that are
relevant to our audit of the Standalone Financial Statements,

prepared in accordance with the accounting principles
generally accepted in India, including the Accounting
Standards prescribed under section 133 of the Act read with
the Companies (Accounting Standards) Rules, 2021 issued
by the ICAI and provisions of section 29 of the Banking
Regulation Act, 1949 and circulars and guidelines issued by
the Reserve Bank of India ('RBI') from time to time and we
have fulfilled our other ethical responsibilities in accordance
with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

3. We draw attention to Note 22 of the Standalone Financial
Statements, which states that the total expenditure includes
an amount of H 1.16 crore incurred in connection with
engaging consultants & other revenue expenditure and
total fixed assets include capital expenditure amounting
to H 0.37 crore, which were incurred beyond the delegated
powers of the whole-time directors and was not ratified by
the Board. Consequently, the said amount is recoverable
from the concerned directors. However, no effect has been
given in the accounts in respect of the recoverable amount.

Our opinion is not modified in respect of this matter.

Key Audit Matters

4. Key audit matters are those matters that in our professional
judgment were of most significance in our audit of the
Standalone Financial Statements for the year ended March
31, 2025. These matters were addressed in the context
of our audit of the Standalone Financial Statements as a
whole and in forming our opinion thereon and we do not
provide a separate opinion on these matters.

We have determined the matters described below to be
the key audit matters to be communicated in our report:

Other Matter

5. The Standalone Financial Statements of the Bank for the year
ended March 31, 2024 were jointly audited by Kalyaniwalla &
Mistry LLP, Ravi Rajan & Co. LLP and Sundaram & Srinivasan,
Chartered Accountants, who vide their audit report dated May
24, 2024, expressed an unmodified opinion on those standalone
Financial Statements. Accordingly, R.G.N. Price & Co., Chartered
Accountants, do not express any opinion on the figures
reported for the year ended March 31,2024 in the Standalone
Financial Statements. Our opinion on the Standalone Financial
Statements is not modified in respect of above matter.

Information Other than the Standalone Financial

Statements and Auditors' Report thereon

6. The Bank's Board of Directors and Management are
responsible for the other information. The other information

comprises the Directors' Report including annexures to
Directors' Report, Management Discussion and Analysis,
Basel III - Pillar 3 disclosures and Corporate Governance
report included in the Annual Report, but does not include
the standalone financial Statements and our auditors'
report thereon. The other information is expected to be
made available to us after the date of this auditor's report.

Our opinion on the Standalone Financial Statements does
not cover the other information and we do not express any
form of assurance or conclusion thereon.

In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the other
information identified above and, in doing so, consider
whether the other information is materially inconsistent
with the Standalone Financial Statements or our

knowledge obtained in the audit, or otherwise appears to
be materially misstated.

If, based on the work we have performed on the other
information that we obtained prior to the date of this
Auditors' Report, we conclude that there is a material
misstatement of this Other Information, we are required
to report that fact.

When we read the other information, if we conclude
that there is a material misstatement therein, we are
required to communicate the matter to those charged
with governance.

Responsibilities of Management and Those
Charged with Governance for the Standalone
Financial Statements

7. The Bank's Board of Directors and Management are
responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 with respect to the preparation of
these Standalone Financial Statements that give a true and
fair view of the financial position, financial performance
and cash flows of the Bank in accordance with the
accounting principles generally accepted in India including
the Accounting Standards specified under section 133 of
the Act read with the Companies (Accounting Standards)
Rules, 2021 and provisions of Section 29 of the Banking
Regulation Act, 1949, and circulars and guidelines
issued by RBI from time to time. This responsibility also
includes maintenance of adequate accounting records in
accordance with the provisions of the above mentioned
Acts for safeguarding of the assets of the Bank and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting
policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the
preparation and presentation of the Standalone Financial
Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements,
Management and Board of Directors are responsible for
assessing the Bank's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless
Management and Board of Directors of the bank either
intends to liquidate the Bank or to cease operations, or
has no realistic alternative but to do so.

The Board of Directors and Management are also
responsible for overseeing the Bank's financial
reporting process.

Auditors' Responsibilities for the Audit of the
Standalone Financial Statements

8. Our objectives are to obtain reasonable assurance about
whether the Standalone Financial Statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an Auditor's Report that includes
our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted
in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material, if individually
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement
of the Standalone Financial Statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations or
the override of internal control.

• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under Section
143(3)(i) of the Companies Act, 2013, we are also
responsible for expressing our opinion on whether the
Bank has adequate internal financial controls system
with reference to Standalone Financial Statements in
place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.

• Conclude on the appropriateness of management's
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Bank's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to
the related disclosures in the Standalone Financial
Statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may
cause the bank to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content
of the Standalone Financial Statements, including the
disclosures and whether the Standalone Financial
Statements represent the underlying transactions and
events in a manner that achieves fair presentation.

Materiality is the magnitude of the misstatements in the
Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions
of a reasonably knowledgeable user of the Standalone
Financial Statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and evaluating the results of
our work; and (ii) to evaluate the effect of any identified
misstatements in the Standalone Financial Statements.

We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.

We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the Standalone Financial
Statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor's
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.

Report on Other Legal and Regulatory
Requirements

9. The Balance Sheet and the Profit and Loss Account have
been drawn up in accordance with Section 29 of the
Banking Regulation Act, 1949; and Accounting Standards
as per section 133 of the Act read with the Companies
(Accounting Standards) Rules, 2021.

10. As required by sub-section (3) of section 30 of the Banking
Regulation Act, 1949, we report that:

a) We have obtained all the information and explanations
which, to the best of our knowledge and belief, were
necessary for the purposes of our audit and have
found them to be satisfactory;

b) Subject to the matter mentioned in Emphasis of
Matter paragraph, the transactions of the Bank,
which have come to our notice, have been within the
powers of the Bank; and

c) The financial accounting systems of the Bank are
centralized and therefore, accounting returns for
the purpose of preparing financial statements
are not required to be submitted by its branches.
However, during the course of our audit, we have
visited 100 branches and offices for the purpose of
understanding the processes, perform necessary
walkthroughs and test of controls and examine the
records maintained at such branches and offices.

d) The profit and loss account shows a true balance of
profit for the year then ended.

11. Further, as required by Section 143(3) of the Act, based on

our audit, we further report to the extent applicable that:

a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit.

b) In our opinion, proper books of account as required
by law have been kept by the Bank so far as it appears
from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss
Account and the Statement of Cash Flows dealt with in
this report are in agreement with the books of account.

d) In our opinion, the aforesaid Standalone Financial
Statements comply with the Accounting Standards
specified under section 133 of the Act read with the
Companies (Accounting Standards) Rules, 2021 to
the extent they are not inconsistent with the policies
prescribed by the RBI.

e) On the basis of the written representations received
from directors as on March 31,2025 and taken on record
by the Board of Directors, none of the directors are
disqualified as at March 31,2025 from being appointed
as a director in terms of section 164(2) of the Act.

f) With respect to the adequacy of internal financial
controls over financial reporting with reference to the
Standalone Financial Statements of the Bank and the
operating effectiveness of such controls, refer to our
separate report in "Annexure A".

g) With respect to the other matters to be included in the
auditor's report in accordance with the requirements of
section 197(16) of the Companies Act, 2013, we report
that since the Bank is a banking company, as defined
under the Banking Regulation Act, 1949; the reporting
under section 197(16) in relation to whether the
remuneration paid by the Bank is in accordance with
the provisions of section 197 of the Act and whether
any excess remuneration has been paid in accordance
with the aforesaid section, is not applicable.

h) With respect to the other matters to be included
in the Auditors Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, as amended, in our opinion and to the best
of our knowledge and belief and according to the
information and explanation given to us:

i. The Bank has disclosed the impact of
pending litigations on its financial position in
Note 17 of Schedule 18 to the Standalone
Financial Statements.

ii. The Bank has made provision, as required under
the applicable law or accounting standards, for
material foreseeable losses, if any, on long-term
contracts including derivative contracts.

iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund during
the year ended March 31,2025 by the bank.

iv. a. The management has represented that, to

the best of its knowledge and belief other
than, as disclosed in note 24 (a) of Schedule
18 to the Standalone Financial Statements,
no funds have been advanced or loaned
or invested (either from borrowed funds
or share premium or any other sources
or kind of funds) by the Bank to or in any
other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with
the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or
invest in other persons or entities identified
in any manner whatsoever by or on behalf
of the Bank ("Ultimate Beneficiaries") or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries;

b. The management has represented that, to the
best of its knowledge and belief other than, as
disclosed in note 24 (b) of Schedule 18 to the
Standalone Financial Statements, no funds have
been received by the Bank from any person(s)
or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether
recorded in writing or otherwise, that the Bank
shall, whether, directly or indirectly, lend or
invest in other persons or entities identified
in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and

c. Based on such audit procedures that were
considered reasonable and appropriate by
us in the circumstances, nothing has come to
our notice that has caused us to believe that
the representations under sub-clause (a)
and (b) contain any material misstatement.

v. a. The final dividend declared or paid during

the year by the Bank is in compliance with
Section 123 of the Companies Act, 2013.

b. As stated in the Note 20 of Schedule 18 to the
Standalone Financial Statements, the Board
of Directors of the Bank have proposed final
dividend for the year which is subject to the
approval of the members at the ensuing Annual
General Meeting. The dividend proposed is in
accordance with section 123 of the Act, to the
extent it applies to declaration of dividend, as
applicable until the date of this report.

vi. The Bank has used such accounting software
for maintaining its books of account which has
a feature of recording audit trail (edit log) facility
and the same has been operated throughout
the year for all transactions recorded in the
software and the audit trail feature has not
been tampered with and the audit trail has been
preserved by the company as per the statutory
requirements for record retention.

For Ravi Rajan & Co. LLP. For R.G.N. Price & Co.

Chartered Accountants Chartered Accountants

Firm Regn. No.009073N/N500320 Firm Regn. No.002785S

CA Sumit Kumar CA Sriraam Alevoor M

Partner Partner

Membership. No: 512555 Membership. No: 221354

Date: 14^th May, 2025 Date: 14^th May, 2025

Place: Mangaluru Place: Mangaluru

UDIN: 25512555BMNPTZ9644 UDIN: 25221354BMMAAR5325