Karur Vysya Bank (KVB) announced it has reached a milestone of ₹2 lakh crore in total business as of September 30, 2025, marking a 15% year-on-year growth. The bank’s Q2 FY26 results show a focus on managing margins and asset quality. Despite a slight dip in net interest margin, KVB maintained strong performance indicators across growth, profitability, and asset quality, and anticipates continued momentum in the second half of the financial year.
Business Highlights
Karur Vysya Bank (KVB) achieved a total business of ₹2,03,216 crore as of September 30, 2025, demonstrating a 15% year-on-year growth and a 4% quarter-on-quarter increase. This includes ₹92,724 crore in advances and ₹1,10,492 crore in deposits, both growing by 15% year-on-year.
Segment Performance
The bank’s business mix remained consistent, with RAM (Retail, Agriculture, MSME) verticals comprising 86% of the business, growing 4% quarter-on-quarter and 19% year-on-year. Corporate banking accounted for the remaining 14%.
Key growth areas within RAM include:
- Retail advances, up 7% quarter-on-quarter, driven by jewel and mortgage loans.
- Commercial business segment, showing a 3% quarterly growth.
- Agriculture loan portfolio, recording 4% growth.
Deposit Growth
KVB’s CASA (Current Account Savings Account) deposits surpassed ₹30,000 crore. Total deposits increased by 4% in Q2 FY26, supported by gains in both term deposits and CASA. Demand deposits and savings deposits each grew by 4%.
Profitability and Asset Quality
Net interest margin (NIM) stood at 3.77%, slightly down by 9 basis points from the previous quarter. Operating profit for the quarter reached ₹1,017 crore, a 25% year-on-year increase, propelled by recoveries. Net profit for the quarter was ₹574 crore, a 10% quarter-on-quarter and 17% year-on-year increase.
Gross NPAs (Non-Performing Assets) slightly increased to 0.76%, while net NPA remained steady at 0.19%.
Strategic Outlook
KVB aims to maintain a full-year NIM guidance of 3.7% to 3.75% for FY26, with expectations for gross NPA to remain below 1.5% and net NPA below 1%. The bank’s ROA (Return on Assets) for the quarter was 1.81%. The bank continues to focus on balancing growth with asset quality and margin management.
Source: BSE
