Karur Vysya Bank Ltd Board of Directors approved the allotment of 14,442 equity shares to a Senior Management Personnel (SMP) of the bank. This allotment is part of the non-cash component of variable pay for the performance period FY23.

The decision was taken at a board meeting held on October 15, 2026. The shares are issued under the KVB ESOS 2018 Scheme. The face value of each allotted equity share is ₹2.

Regulatory Compliance and Meeting Details

The bank disclosed this development pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting commenced at 12:30 pm and concluded at 4:45 pm on the same day. The Company Secretary and Compliance Officer, Srinivasarao Maddirala, signed the disclosure letter to the stock exchanges.

Nature of Compensation

The allotment serves as a component of the compensation structure for the designated SMP. It specifically addresses the non-cash portion of the variable pay linked to the financial year 2022-23 results. No other significant corporate actions were highlighted in this specific regulatory filing.

Karur Vysya Bank reported a 37.3% year-on-year increase in Q2 net profit, reaching ₹788 crore compared to ₹574 crore in the corresponding period last year. This performance was driven by robust operating profit growth and reduced credit costs.

The bank also witnessed an improvement in asset quality metrics on a quarter-on-quarter basis. Gross Non-Performing Assets (GNPA) declined to 0.69% from 0.74%, while Net Non-Performing Assets (NNPA) tightened to 0.18% from 0.19%. Net Interest Margin (NIM) stood at 4.34%, expanding 10 basis points YoY.

Financial performance overview

The following table summarizes the key financial and asset quality metrics disclosed for the second quarter:

Balance sheet growth and capital adequacy

Total business grew by 18% YoY to ₹2,39,712 crore, supported by strong momentum in both deposits and advances. Gross advances increased by 20% YoY to ₹1,11,589 crore, while deposits rose by 16% YoY to ₹1,28,123 crore. The CASA ratio remained stable at 27.52%.

Capital position remains comfortable with the Capital to Risk-weighted Assets Ratio (CRAR) at 17.97%, well above regulatory requirements. Tier I capital stood at ₹15,154 crore, providing ample headroom for future growth.

First-half performance

For the first half of FY27, the bank recorded a net profit of ₹1,543 crore, registering a growth of 40.91% from ₹1,095 crore in the corresponding period last year. PPOP for the half-year grew 23.86% to ₹2,258 crore. Net interest income increased 24.73% to ₹2,920 crore, while the cost-to-income ratio improved to 40.53% from 44.76% a year ago.

What the numbers show

Revenue growth of 15.2% in total income outpaced the marginal improvement in asset quality ratios, suggesting that top-line expansion and operational efficiency were primary drivers. The simultaneous decline in both GNPA and NNPA indicates stable credit underwriting. Notably, provisions dropped significantly by 57% YoY to ₹118 crore, which directly boosted the bottom line. The spread on funds widened to 3.55% from 3.04% YoY, reflecting better yield management despite rising cost of funds.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE036D01028/6e21521b-1a82-4c6b-8bed-e5cf8099f265.pdf