Karur Vysya Bank received a favourable order from the Income Tax Appellate Tribunal on September 1, 2026. The tribunal set aside a tax demand of ₹40.34 crore for assessment year 2022-23. This ruling resolves a key litigation matter without impacting the bank's operations or finances.

The decision overturns an earlier order by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre. That authority had partly allowed the bank's appeal against the original demand raised by the Assessment Unit.

Litigation Timeline

The dispute originated with the Faceless Assessing Officer of the National Faceless Assessment Unit. The bank initiated litigation on April 12, 2024. Prior to this latest development, the bank had disclosed that it held adequate factual and legal grounds to substantiate its position. It expected the entire demand to be set aside based on precedents from appellate authorities.

Regulatory Disclosures

The bank filed this update pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also complied with the SEBI Master Circular dated January 30, 2026, regarding disclosure of litigation status. The circular reference is SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026.

Key Details

Srinivasarao Maddirala, Company Secretary and Compliance Officer, confirmed the receipt of the order. The bank stated there is no impact on its financials, operations, or other activities following the tribunal's decision.

Karur Vysya Bank has inaugurated 16 new branches in a single day, significantly expanding its physical banking network.

The bank confirmed the openings cover key markets including Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, and the Delhi National Capital Region (NCR). This move marks a shift from previous plans to open these outlets, with the bank now executing the expansion simultaneously.

Branch expansion details

The simultaneous opening of 16 branches highlights the bank's accelerated strategy to strengthen its on-ground presence in high-growth regions. The following table summarises the key details of this update:

This execution follows earlier announcements regarding the bank's intent to broaden its reach. The specific phasing previously undisclosed has now been realised through this coordinated launch.

Network growth and business scale

With the latest expansion, the bank's branch network stands at 919 across the country. This physical expansion complements its growing digital banking network, including the KVB DLite mobile application which offers more than 150 financial and non-financial services.

The expansion comes on the back of continued growth in the bank's business. As of June 30, 2026, Karur Vysya Bank's total business stood at ₹2,27,267 crore, comprising deposits of ₹1,22,587 crore and advances of ₹1,04,680 crore. The bank also reported its highest-ever quarterly net profit of ₹756 crore in Q1FY27.

Shri Ramesh Babu, Managing Director & CEO of Karur Vysya Bank, led the milestone expansion by inaugurating the new Gachibowli branch in Hyderabad and opening the remaining branches virtually via video conference. He noted that while digital banking has made everyday transactions easier, branches continue to play an important role for MSME, retail, and agricultural customers.