Karur Vysya Bank has announced its strongest financial performance in history, reporting an annual net profit of INR 2,500 crore, a 29% growth compared to the previous year. The bank’s total business reached INR 2,14,420 crore, driven by robust advances and deposit growth. With a healthy CRAR of 18.76% and a strong focus on asset quality, the bank enters the new fiscal year with cautious optimism and a strategic emphasis on sustainable growth.
Record Financial Growth
Karur Vysya Bank has achieved significant milestones for the fiscal year 2026, delivering a record-breaking net profit of INR 2,500 crore for the year, with INR 725 crore generated in the final quarter alone. Operating profit for the full year reached INR 4,075 crore, marking a 27% increase over the previous year. This performance highlights the success of the bank’s operational discipline and strategic management.
Business Expansion and Advances
The bank’s total business expanded to INR 2,14,420 crore, representing a 15% growth year-on-year. Advances grew by 17% to INR 98,754 crore, while deposits rose by 13% to INR 1,15,666 crore. The RAM (Retail, Agri, and MSME) verticals remain a core pillar, now constituting 86% of the total advances portfolio. Notably, the bank achieved its highest absolute growth in CASA deposits in the last decade, with an increase of INR 3,290 crore.
Asset Quality and Margins
Asset quality remained robust, with Gross NPA standing at 0.75% and Net NPA at 0.19%. The bank maintained a strong net interest margin (NIM) of 3.97% for the full year. Management noted that the fixed-rate loan book increased to 29% by the end of March 2026, which helped buffer the bank against interest rate fluctuations. The bank also remains well-capitalized with a CRAR of 18.76%, ensuring sufficient headroom for planned growth in the coming year.
Strategic Outlook for FY 2027
Looking ahead, the bank has adopted a cautious but strategic approach for the new financial year. Key priorities include expanding the branch network by 50 new locations and focusing on high-quality acquisitions to sustain growth. While market conditions remain volatile, management aims for credit growth to stay 1% to 2% above industry levels. The bank also plans to introduce new digital products, including premium credit cards and enhanced loan-against-mutual-fund integration, to further strengthen its market position.
Source: BSE
