Karur Vysya Bank shares rallied over 8% in early trade on Tuesday after the lender reported a strong set of earnings for the June quarter, with net profit rising nearly 45% year-on-year (YoY).
The stock of the private lender climbed as much as 9.49% to an intraday high of ₹329.95 apiece.
At around 9:30 am, the shares were trading 8.10% higher at ₹325.75 apiece. In comparison, the BSE Sensex was down 0.06% at 77,660.
Q1FY27 Financial Performance
Karur Vysya Bank reported a 44.92% YoY increase in net profit to ₹756 crore for the quarter ended June 2026, compared with ₹521 crore in the corresponding quarter last year.
Pre-provision operating profit (PPOP) rose 36.15% to ₹1,096 crore from ₹805 crore a year ago.
Net interest income (NII) increased 31.76% to ₹1,423 crore from ₹1,080 crore, while the net interest margin (NIM) improved to 4.34% from 3.86% in the year-ago period.
The bank's cost of deposits declined by 32 basis points to 5.45% from 5.77%, while the yield on advances improved to 10.11% from 10%.
Commission and fee-based income rose 7.57% YoY to ₹270 crore from ₹251 crore.
Operating expenses increased to ₹769 crore from ₹721 crore, although the cost-to-income ratio improved considerably to 41.24% from 47.24% a year earlier.
Business Growth
The bank's balance sheet expanded 15.15% YoY to ₹1.44 lakh crore as of June 30, 2026, from ₹1.25 lakh crore a year earlier.
Total business grew 15.94% to ₹2.27 lakh crore, driven by healthy growth in both deposits and advances.
Total deposits rose 14.94% YoY to ₹1.23 lakh crore, while total advances increased 17.13% to ₹1.05 lakh crore.
Capital Position
Karur Vysya Bank's capital adequacy ratio (CRAR) under Basel III improved to 18.61% as of June 30, 2026, compared with 17.36% a year earlier, well above the regulatory requirement of 11.50%.
Tier-I capital ratio stood at 17.98%, up from 15.58% a year ago.
Asset Quality
Gross non-performing assets (GNPA) stood at 0.74% of gross advances as of June 30, 2026, compared with 0.66% a year ago, though it was 1 basis point lower sequentially.
Net non-performing assets (NNPA) remained unchanged at 0.19%.
The provision coverage ratio (PCR) was 96.21% as of June 30, 2026, compared with 96.76% a year earlier.
Branch Network
As of June 30, 2026, Karur Vysya Bank operated 903 branches, one Digital Banking Unit, and 2,169 ATMs and cash recyclers. Around 55% of its branches are located in semi-urban and rural areas. The bank also has a network of 338 business correspondents.
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