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Karur Vysya Bank has reported 14% growth in net profit at Rs 521.45 crore for the quarter ended June 2025 (Q1FY2026). The bank has posted 5% growth in net interest income (NII), while the core fee income of the bank improved 4% in Q1FY2026. The Net Interest Margin (NIM) of the bank declined to 3.86% in Q1FY2026 compared to 4.14% in the corresponding quarter of previous year. On business front, the bank as has posted 15% growth in business with strong 15% surge in loan book. The asset quality of the bank was strong in Q1FY2026. Bank has reduced the credit to deposit ratio to 83.8% at end June 2025 from 84.1% at end June 2024. However, the CASA ratio of the bank has declined to 27.5% at end June 2025 from 30.4% at end June 2024. Asset quality remains strong: The bank has continued to maintain strong asset quality in Q1FY2026. The fresh slippages of loans stood at Rs 188 crore in Q1FY2026 compared with 179 crore in previous quarter and Rs 174 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs was at Rs 70 crore and the write-off of loans was at Rs 167 crore in Q1FY2026. The standard restructured loan book of the bank stood at Rs 506 crore end June 2025. Provision coverage ratio was steady at 96.76% at end June 2025 compared to 96.81% a quarter ago and 94.91% a year ago. The capital adequacy ratio of the bank stood at 17.4% with Tier I ratio at 16.3% at end June 2025. The risk weighted assets of the bank has increased 11% YoY to Rs 69441 crore end June 2025, | Asset Quality Indicators: Karur Vysya Bank | | ' | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation | | QoQ | YoY | | Gross NPA (Rs Crore) | 592.60 | 641.80 | 690.92 | 885.61 | 1024.53 | -8 | -42 | | Net NPA (Rs Crore) | 170.26 | 166.21 | 166.69 | 219.22 | 293.66 | 2 | -42 | | % Gross NPA | 0.66 | 0.76 | 0.83 | 1.10 | 1.32 | -10 | -66 | | % Net NPA | 0.19 | 0.20 | 0.20 | 0.28 | 0.38 | -1 | -19 | | % PCR | 96.76 | 96.81 | 96.87 | 96.09 | 94.91 | -5 | 185 | | % CRAR - Basel III | 17.36 | 18.17 | 15.91 | 16.28 | 16.47 | -81 | 89 | | % CRAR - Tier I - Basel III | 16.33 | 17.12 | 15.03 | 15.39 | 15.58 | -79 | 75 | | Variation in basis points for figures given in percentages and in % for figures in Rs crore | ' Business Highlights: Healthy business growth: The business of the bank has increased 15% YoY to Rs 196024 crore end June 2025, driven by 15% surge in advances to Rs 89374 crore. Deposits rose 15% to Rs 106650 crore at end June 2025. CASA deposits ratio eases yoy, improves sequentially: The CASA deposits of the bank increased 5% YoY to Rs 29306 crore at end June 2025. The current account deposits increased 8% to Rs 9392 crore, while saving account deposits moved up 3% to Rs 19914 crore end June 2025. The CASA ratio declined to 27.5% at end June 2025 compared to 30.4% at end June 2024, while improved from 27.3% a quarter ago. The term deposits have increased 20% to Rs 77344 crore end June 2025. Strong loan growth: Advances growth was driven by retail loans rising 20% YoY to Rs 22543 crore at end June 2025, while credit to agriculture increased 20% to Rs 21708 crore and MSME 19% to Rs 32311 crore at end June 2025. The corporate credit has declined 6% to Rs 12812 crore end June 2025. Investment book of the bank increased 12% YoY to Rs 25774 crore at end June 2025. The SLR book moved up 16% to Rs 23344 crore, while non SLR book declined 18% to Rs 2430 crore at end June 2025. The AFS book increased 15% to Rs 5807 crore, while HTM book rose 11% to Rs 19967 crore at end June 2025. The duration of the AFS investment portfolio stood at 3.56 years end June 2025 compared with 2.52 years at end June 2024. Margins ease: The bank has shown 29 bps YoY jump in cost of deposits to 5.77%, while yield on advances declined 12 bps YoY to 10.00% in Q1FY2026. Thus, the NIM has declined 28 bps YoY, while declined 19 bps qoq to 3.86% in Q1FY2026. Branch expansion: The bank has steady distribution network of 888 branches and 2226 ATM`s end June 2025. Book value of the bank stood at Rs 154.6 per share at end June 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 151.8 per share at end June 2025. Quarterly Performance NII growth moderate as NIM decline: Bank has recorded 12% increase in the interest earned at Rs 2568.55 crore, while interest expenses jumped 18% to Rs 1489.20 crore in Q1FY2026. NII rose 5% to Rs 1079.35 crore in the quarter ended June 2025. Strong recoveries income boost non-interest income: Bank has posted strong 4% growth in core fee income to Rs 251 crore, while the recoveries and other income jumped 34% to Rs 196 crore. The other income jumped 34% to Rs 196 crore, leading to 15% rise in the overall non-interest income to Rs 447.25 crore in the quarter ended June 2025. Stable expenses ratio: The operating expenses of the bank increased 8% to Rs 721.10 crore, as other expenses moved up 7% to Rs 356.16 crore, while employee expenses increased 9% to Rs 364.94 crore in Q1FY2026. Cost to income ratio was steady at 47.2% in Q1FY2026 compared with 47.2% in Q1FY2025, helping the Operating Profit to increase 8% to Rs 805.50 crore. Provisions and contingencies decline: The bank has shown 11% decline in provisions to Rs 118.14 crore. The loan loss provisions rose 14% to Rs 114 crore, while standard asset provisions fell 82% to Rs 6 crore. The bank has written back investment provisions of Rs 2 crore. Effective tax rate declined to 24.1% in Q1FY2026 from 25.2% in Q1FY2025. Net Profit rose by 14% YoY to Rs 521.45 crore during quarter ended June 2025. Financial Performance FY2025: Bank has posted 21% increase in net profit to Rs 1941.64 crore in the year ended March 2025 (FY2025). The net interest income increased 12% to Rs 4259.92 crore, while non-interest income moved up 11% to Rs 1829.55 crore, pushing up net total income by 11% to Rs 6089.47 crore in FY2025. The operating expenses increased 9% to Rs 2877.14 crore, while provision and contingencies declined 15% to Rs 621.60 crore, allowing profit before tax to increase 23% to Rs 2590.73 crore in FY2025. The cost-to-income ratio improved to 47.2% in FY2025 compared to 48.3% in FY2024. An effective tax rate rose to 25.1% in FY2025 compared to 23.6% in FY2024. The net profit has increased 21% to Rs 1941.64 crore in FY2025. Karur Vysya Bank has announced a bonus issue of shares in the ratio of 1:5. Record date is 26 August 2025. | Karur Vysya Bank: Results | | Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % | | Interest Earned | 2568.55 | 2284.53 | 12 | 9678.04 | 8213.16 | 18 | | Interest Expended | 1489.20 | 1260.18 | 18 | 5418.12 | 4394.74 | 23 | | Net Interest Income | 1079.35 | 1024.35 | 5 | 4259.92 | 3818.42 | 12 | | Other Income | 447.25 | 388.35 | 15 | 1829.55 | 1649.47 | 11 | | Net Total Income | 1526.60 | 1412.70 | 8 | 6089.47 | 5467.89 | 11 | | Operating Expenses | 721.10 | 666.85 | 8 | 2877.14 | 2638.75 | 9 | | Operating Profits | 805.50 | 745.85 | 8 | 3212.33 | 2829.14 | 14 | | Provisions & Contingencies | 118.14 | 132.94 | -11 | 621.60 | 728.95 | -15 | | Profit Before Tax | 687.36 | 612.91 | 12 | 2590.73 | 2100.19 | 23 | | EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | | PBT after EO | 687.36 | 612.91 | 12 | 2590.73 | 2100.19 | 23 | | Provision for tax | 165.91 | 154.26 | 8 | 649.09 | 495.38 | 31 | | PAT | 521.45 | 458.65 | 14 | 1941.64 | 1604.81 | 21 | | EPS*(Rs) | 25.9 | 22.8 | ' | 24.1 | 20.0 | ' | | Equity | 161.0 | 160.9 | ' | 161.0 | 160.9 | ' | | Adj BV (Rs) | 151.8 | 127.1 | ' | 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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