Karur Vysya Bank (KVB) reported a robust performance for Q3 FY26, with total business reaching INR2,11,647 crores, up 16% year-on-year. Net Interest Margin (NIM) expanded to 3.99%. The bank’s operating profit increased by 23% to INR1,005 crores, while net profit rose 25% to INR689.96 crores. Asset quality remains strong with gross NPA at 0.71% and net NPA steady at 0.19%. KVB is set to continue its growth trajectory with strategic initiatives and a focus on maintaining asset quality.
Financial Performance Highlights
Karur Vysya Bank (KVB) demonstrated a strong performance in Q3 FY26, achieving significant growth across key financial metrics. Total business reached INR2,11,647 crores, reflecting a 16% year-on-year increase. Advances grew by 17% year-on-year, reaching INR97,052 crores, while deposits increased by 16% year-on-year to INR1,14,595 crores.
Profitability and Margin Expansion
KVB successfully expanded its Net Interest Margin (NIM) to 3.99%, a 22 basis points increase from the previous quarter. Operating profit for the quarter stood at INR1,005 crores, a 23% increase compared to the same quarter in the prior year. Net profit for the quarter reached INR689.96 crores, representing a 25% year-on-year growth.
Asset Quality and Credit Costs
The bank maintained strong asset quality, with gross NPA decreasing slightly to 0.71% and net NPA remaining steady at 0.19%. The annualized credit cost for the quarter was 0.47%. Fresh slippages for the quarter were INR154.14 crores, translating to 0.63% on an annualized basis.
Strategic Initiatives and Outlook
KVB is focusing on improving income from bancassurance and non-fund-based business. The bank continues to revamp its credit card business and plans to launch new variants. Guidance for NIM for the full year is projected to be in the range of 3.9% to 3.95%. ROA for the quarter improved to 2.05%.
Segment Performance
RAM verticals constituted 86% of the business, while corporate banking accounted for 14%. Commercial business grew by 3% over the previous quarter, and disbursements in the commercial segment increased by 21% year-on-year. The agriculture loan portfolio experienced 4% growth during the quarter.
Deposit Growth and CASA
Total deposits increased by 4% during Q3 FY26, driven by gains in both retail term deposits and CASA. CASA balances grew by 2% over the same period, with demand deposits up 1% and savings deposits up 2%.
Source: BSE
