Karur Vysya Bank
Asset quality stable: The bank has maintained stable asset quality in Q2FY2026.
The fresh slippages of loans stood at Rs 350 crore in Q2FY2026 compared with 188 crore in previous quarter and Rs 181 crore in the corresponding quarter last year. Segment wise slippages were stable for retail segment at Rs 38 crore, agriculture at Rs 26 crore and commercial banking at Rs 68, while the corporate segment witnessed higher slippages of Rs 218 crore in Q2FY26. The recoveries and upgradations of NPAs was at Rs 84 crore and the write-off of loans was at Rs 151 crore in Q2FY2026. The standard restructured loan book of the bank declined at Rs 468 crore end September 2025. Provision coverage ratio was steady at 96.76% at end September 2025 compared to 96.76% a quarter ago and 96.09% a year ago. The capital adequacy ratio of the bank stood at 16.6% with Tier I ratio at 0.0% at end September 2025. The risk weighted assets of the bank has increased 15% YoY to Rs 72498 crore end September 2025,| Asset Quality Indicators: Karur Vysya Bank | ||||||||
| ? | Sep-25 | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Variation | ||
| QoQ | YTD | YoY | ||||||
| Gross NPA (Rs Crore) | 707.83 | 592.60 | 641.80 | 690.92 | 885.61 | 19 | 10 | -20 |
| Net NPA (Rs Crore) | 175.75 | 170.26 | 166.21 | 166.69 | 219.22 | 3 | 6 | -20 |
| % Gross NPA | 0.76 | 0.66 | 0.76 | 0.83 | 1.10 | 10 | 0 | -34 |
| % Net NPA | 0.19 | 0.19 | 0.20 | 0.20 | 0.28 | 0 | -1 | -9 |
| % PCR | 96.76 | 96.76 | 96.81 | 96.87 | 96.09 | 0 | -5 | 67 |
| % CRAR - Basel III | 16.58 | 17.36 | 18.17 | 15.91 | 16.28 | -78 | -159 | 30 |
| % CRAR - Tier I - Basel III | 15.58 | 16.33 | 17.12 | 15.03 | 15.39 | -75 | -154 | 19 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
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Business Highlights:
Healthy business growth: The business of the bank has increased 16% YoY to Rs 204296 crore end September 2025, driven by 17% surge in advances to Rs 93804 crore. Deposits rose 15% to Rs 110492 crore at end September 2025.
CASA deposits ratio improves qoq, eases yoy: The CASA deposits of the bank increased 8% YoY to Rs 30555 crore at end September 2025. The current account deposits increased 11% to Rs 9776 crore, while saving account deposits increased 7% to Rs 20779 crore end September 2025. The CASA ratio declined to 27.7% at end September 2025 compared to 29.5% at end September 2024, while rose from 27.5% a quarter ago. The term deposits have increased 18% to Rs 79937 crore end September 2025.
Strong loan growth: Advances growth was driven by retail loans rising 22% YoY to Rs 24023 crore at end September 2025, while credit to agriculture increased 20% to Rs 22614 crore and MSME 16% to Rs 33209 crore at end September 2025. The corporate credit has improved 7% to Rs 13958 crore end September 2025.
Investment book of the bank increased 20% YoY to Rs 28198 crore at end September 2025. The SLR book moved up 26% to Rs 25570 crore, while non SLR book declined 20% to Rs 2628 crore at end September 2025. The AFS book jumped 26% to Rs 7027 crore, while HTM book rose 18% to Rs 21171 crore at end September 2025. The duration of the AFS investment portfolio stood at 3.58 years end September 2025 compared with 2.67 years at end September 2024.
Margins ease: The bank has shown 4 bps YoY rise in cost of deposits to 5.60%, while yield on advances declined 34 bps YoY to 9.76% in Q2FY2026. Thus, the NIM has declined 35 bps YoY and fell 9 bps qoq to 3.77% in Q2FY2026.
Branch expansion: The bank has added 7 branches and reduced 1 ATMs in Q2FY2026, taking overall tally to 895 branches and 2225 ATM`s end September 2025.
Book value of the bank stood at Rs 132.4 per share at end September 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 130.1 per share at end September 2025.
Quarterly Performance
NII rises on one off interest recovery: Bank has recorded 18% increase in the interest earned at Rs 2807.97 crore, while interest expenses increased 17% to Rs 1546.79 crore in Q2FY2026. NII improved 19% to Rs 1261.18 crore in the quarter ended September 2025, driven by one off interest income recovery of Rs 139 crore from technical write off account.
Healthy growth in the core fee income: Bank has posted strong 10% growth in core fee income to Rs 253 crore, while the recoveries and other income improved 8% to Rs 259 crore, leading to 9% rise in the overall non-interest income to Rs 512.32 crore in the quarter ended September 2025.
Expenses ratio dips: The operating expenses of the bank increased 6% to Rs 756.12 crore, as other expenses moved up 9% to Rs 390.99 crore, while employee expenses rose 2% to Rs 365.13 crore in Q2FY2026. Cost to income ratio improved to 42.6% in Q2FY2026 compared with 46.7% in Q2FY2025, helping the Operating Profit to increase 25% to Rs 1017.38 crore.
Provisions and contingencies jump: The bank has shown 53% surge in provisions to Rs 274.37 crore. The loan loss provisions galloped 68% to Rs 261 crore, while investment provisions surged to s 21 crore. The bank has written back standard asset provisions of Rs 8 crore in Q2FY2026.
Effective tax rate declined to 22.8% in Q2FY2026 from 25.6% in Q2FY2025. Net Profit rose by 21% YoY to Rs 573.96 crore during quarter ended September 2025.
Financial Performance H1FY2026:
Bank has posted 18% increase in net profit to Rs 1095.41 crore in the half year ended September 2025 (H1FY2026). The net interest income increased 12% to Rs 2340.53 crore, while non-interest income moved up 12% to Rs 959.57 crore, pushing up net total income by 12% to Rs 3300.10 crore in H1FY2026. The operating expenses increased 7% to Rs 1477.22 crore, while provision and contingencies galloped 25% to Rs 392.51 crore, allowing profit before tax to increase 14% to Rs 1430.37 crore in H1FY2026. The cost-to-income ratio improved to 44.8% in H1FY2026 compared to 47.0% in H1FY2025. An effective tax rate declined to 23.4% in H1FY2026 compared to 25.4% in H1FY2025. The net profit has increased 18% to Rs 1095.41 crore in H1FY2026.| Karur Vysya Bank: Results | |||||||||
| Particulars | 2509 (3) | 2409 (3) | Var % | 2509 (6) | 2409 (6) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 2807.97 | 2386.53 | 18 | 5376.52 | 4673.49 | 15 | 9678.04 | 8213.16 | 18 |
| Interest Expended | 1546.79 | 1324.05 | 17 | 3035.99 | 2584.23 | 17 | 5418.12 | 4394.74 | 23 |
| Net Interest Income | 1261.18 | 1062.48 | 19 | 2340.53 | 2089.26 | 12 | 4259.92 | 3818.42 | 12 |
| Other Income | 512.32 | 469.48 | 9 | 959.57 | 855.40 | 12 | 1829.55 | 1649.47 | 11 |
| Net Total Income | 1773.50 | 1531.96 | 16 | 3300.10 | 2944.66 | 12 | 6089.47 | 5467.89 | 11 |
| Operating Expenses | 756.12 | 715.72 | 6 | 1477.22 | 1382.57 | 7 | 2877.14 | 2638.75 | 9 |
| Operating Profits | 1017.38 | 816.24 | 25 | 1822.88 | 1562.09 | 17 | 3212.33 | 2829.14 | 14 |
| Provisions & Contingencies | 274.37 | 179.83 | 53 | 392.51 | 312.77 | 25 | 621.60 | 728.95 | -15 |
| Profit Before Tax | 743.01 | 636.41 | 17 | 1430.37 | 1249.32 | 14 | 2590.73 | 2100.19 | 23 |
| Provision for tax | 169.05 | 162.81 | 4 | 334.96 | 317.07 | 6 | 649.09 | 495.38 | 31 |
| PAT | 573.96 | 473.60 | 21 | 1095.41 | 932.25 | 18 | 1941.64 | 1604.81 | 21 |
| EPS*(Rs) | 23.8 | 23.5 | ? | 22.7 | 23.2 | ? | 24.1 | 19.9 | ? |
| Equity | 193.3 | 160.9 | ? | 193.3 | 160.9 | ? | 161.0 | 160.9 | ? |
| Adj BV (Rs) | 130.1 | 132.0 | ? | 130.1 | 132.0 | ? | 145.5 | 120.2 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 2, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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