The Karur Vysya Bank LimitedQuarter ended Results & Financial Update
The Karur Vysya Bank Limited: Quarter ended standalone results and company financials – revenue ₹3,235.40 Cr, PAT ₹787.69 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Find an answer
Ask this result
Chart · Market context
The Karur Vysya Bank price & chart
Quarter overview
Quarterly earnings analysis
The bank reported robust financial performance for the quarter ended September 30, 2026, registering a standalone net profit (PAT) of Rs 787.69 crore, up 37.24% year-on-year from Rs 573.96 crore in the corresponding quarter of the previous year.
Total business expansion remained broad-based, with aggregate business reaching Rs 2,39,712 crore, representing an 17.96% year-on-year and 5.48% sequential increase.
Net interest income for the quarter stood at Rs 1,497 crore, marking an 18.72% year-on-year growth compared to Rs 1,261 crore in Q2 FY25, supported by an expanding advance portfolio and stable net interest margins.
Gross advances grew by 20.35% year-on-year and 6.60% sequentially to reach Rs 1,11,589 crore, led by robust traction across RAM verticals which expanded 20% year-on-year to Rs 95,576 crore.
Total deposits increased by 15.96% year-on-year and 4.52% quarter-on-quarter to Rs 1,28,123 crore, while the CASA ratio stood at 27.52% with total CASA balances up 15.41% year-on-year to Rs 35,265 crore.
Asset quality metrics exhibited continued improvement, with gross non-performing assets (GNPA) declining by 5 basis points sequentially to 0.69% (Rs 765 crore) and net non-performing assets (NNPA) dropping to 0.18% (Rs 199 crore).
Operating profitability remained solid, with pre-provision operating profit (PPOP) rising 14.26% year-on-year to Rs 1,162 crore, aided by disciplined operating expenses and a cost-to-income ratio of 39.85%.
01 · Business model
What does The Karur Vysya Bank do?
The Karur Vysya Bank Limited is a scheduled commercial bank operating primarily across southern and western India, offering retail, commercial, agricultural, and corporate banking products.
The bank generates core earnings through net interest income from a diversified loan book, complemented by fee-based commission income and treasury operations.
Its distribution network spans 921 branches, 1 Digital Banking Unit, and 2,192 ATMs/cash recyclers, with over half of its branches positioned in semi-urban and rural areas.
The operating strategy focuses on granular RAM (Retail, Agriculture, and Commercial) asset growth, stable CASA deposit mobilization, and disciplined asset-quality management.
02 · Historical context
What shaped the business before this quarter
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Quarter ended | Year-ago | Previous quarter |
|---|---|---|---|
| Total income | ₹3,670.21 Cr | ₹3,320.29 Cr | ₹3,491.21 Cr |
| Profit before tax | ₹1,043.67 Cr | ₹743.01 Cr | ₹1,095.60 Cr |
| Profit after tax | ₹787.69 Cr | ₹573.96 Cr | ₹755.70 Cr |
| EPS | ₹8.15 | ₹5.94 | ₹7.82 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Net interest income grew 18.72% year-on-year to Rs 1,497 crore for the quarter, driven by higher interest earned on an expanding volume of advances.
Advances under RAM verticals grew 20% year-on-year to Rs 95,576 crore, led by robust growth in commercial banking, mortgage loans, and agricultural gold loans.
Commission and fee-based income improved by 14.62% year-on-year to Rs 290 crore for the quarter, reflecting higher transactional volumes and customer activity.
NIM, spread, funding cost and credit cost
Net interest margin for the quarter stood at 4.34% compared to 4.24% in the corresponding quarter of the previous year.
The cost of deposits decreased by 11 basis points year-on-year to 5.49% for the quarter, easing overall funding costs.
Yield on advances was recorded at 10.20% for the quarter, down 18 basis points compared to 10.38% in Q2 FY26.
Cost-to-income ratio improved to 39.85% for the quarter compared to 42.63% in Q2 FY25, reflecting positive operating leverage.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Total deposits stood at Rs 1,28,123 crore, with term deposits under Rs 5 crore comprising 78% of total term deposits, reflecting a stable retail liability base.
CASA deposits increased 15.41% year-on-year and 4.40% sequentially to Rs 35,265 crore, maintaining a CASA ratio of 27.52%.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Commercial advances grew 19% year-on-year and 8% quarter-on-quarter to Rs 39,407 crore, representing 35% of gross advances.
Retail advances expanded 21% year-on-year and 5% sequentially to Rs 29,024 crore, anchored by mortgage and retail jewel loans.
Agricultural advances increased by 20% year-on-year and 4% sequentially to Rs 27,145 crore, supported by agri-jewel loans.
Corporate advances grew 24% year-on-year and 12% sequentially to reach Rs 17,190 crore, with 94% of the corporate book rated investment grade or above.
Geography and market mix
The bank operates 921 branches alongside 1 Digital Banking Unit and 2,192 ATMs/cash recyclers, with 54.29% of branches located in semi-urban and rural areas.
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
The bank launched 'KVB Corp', a dedicated mobile banking application exclusively for corporate customers, alongside enhanced UPI security features and biometric authentication.
08 · Reported developments
What changed operationally
The bank recorded its highest quarterly net profit of Rs 788 crore, driven by robust net interest income and lower provisioning requirements.
CRAR under Basel III guidelines stood comfortably at 17.97% with a Tier 1 ratio of 17.32%, well above the regulatory requirement of 11.50%.
09 · Items worth noticing
The line items that can distort a quick read
Financial results for Q2 FY27 include a one-off interest recovery of Rs 28.35 crore from technically written-off accounts.
10 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Total borrowings stood at Rs 2,321 crore as of September 30, 2026, registering an 8% decrease compared to Rs 2,517 crore a year ago.
11 · Beyond the numbers
What changed beyond the numbers
Awards and Recognition
The bank was awarded 'Best Small Indian Bank' by Business Today for the third consecutive year during H1 FY27.
12 · Previous-quarter changes
What changed since the previous quarter
Gross advances grew 6.60% quarter-on-quarter from Rs 1,04,680 crore in Q1 FY27 to Rs 111,589 crore in Q2 FY27.
GNPA ratio improved by 5 basis points sequentially from 0.74% in Q1 FY27 to 0.69% in Q2 FY27.
13 · Key Q&A
The quarter, answered directly
What does The Karur Vysya Bank do?
The Karur Vysya Bank Limited is a scheduled commercial bank operating primarily across southern and western India, offering retail, commercial, agricultural, and corporate banking products.
What is the clearest takeaway from Quarter ended?
The bank reported robust financial performance for the quarter ended September 30, 2026, registering a standalone net profit (PAT) of Rs 787.69 crore, up 37.24% year-on-year from Rs 573.96 crore in the corresponding quarter of the previous year.
What drove earnings or loan-book movement?
Net interest income grew 18.72% year-on-year to Rs 1,497 crore for the quarter, driven by higher interest earned on an expanding volume of advances.
What mattered most for margins, funding or credit cost?
Net interest margin for the quarter stood at 4.34% compared to 4.24% in the corresponding quarter of the previous year.
What changed operationally beyond the headline numbers?
The bank launched 'KVB Corp', a dedicated mobile banking application exclusively for corporate customers, alongside enhanced UPI security features and biometric authentication.
What should the next disclosure help confirm?
Monitor sustained growth velocity in RAM lending verticals and maintenance of deposit granularity.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
RAM Portfolio Momentum: Monitor sustained growth velocity in RAM lending verticals and maintenance of deposit granularity.
- 02
Asset Quality Metrics: Track sequential movement in slippage ratios, credit costs, and provision coverage ratios.
- 03
Margin Trajectory: Observe net interest margins and cost of deposits against evolving interest rate cycles.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.
