Karur Vysya Bank Hits INR 2 Lakh Crore Business Milestone, Reports 17% YoY Net Profit Growth in Q2 FY26

Karur Vysya Bank (KVB) has achieved a significant milestone in Q2 FY26, crossing the INR 2 lakh crore mark in total business. The bank reported a 17% year-on-year increase in net profit, reaching INR 574.00 crores for the quarter ended September 30, 2025.

Key Financial Highlights

Metric	Q2 FY26	YoY Growth
Total Business	INR 2,03,216.00 crores	15%
Advances	INR 92,724.00 crores	15%
Deposits	INR 1,10,492.00 crores	15%
Net Profit	INR 574.00 crores	17%
CASA Balances	INR 30,000.00+ crores	-

The bank's total business stood at INR 2,03,216.00 crores, reflecting a robust 15% annual growth. Both advances and deposits grew by 15% year-on-year, reaching INR 92,724.00 crores and INR 1,10,492.00 crores, respectively.

Asset Quality and Recoveries

KVB reported a slight increase in Gross Non-Performing Assets (NPAs) from 0.66% to 0.76%, while Net NPAs remained steady at 0.19%. The bank made a significant recovery of INR 295.00 crores from a written-off account, comprising INR 157.00 crores in principal and INR 139.00 crores in interest.

Fresh slippages increased to INR 350.00 crores from INR 188.00 crores in the previous quarter. Notably, INR 218.00 crores of these slippages originated from two corporate accounts that the management chose to recognize early.

Business Mix and Growth Drivers

The bank's business mix remained stable, with Retail, Agriculture, and MSME (RAM) verticals constituting 86% of the business, while corporate banking accounted for 14%. RAM verticals grew by 4% quarter-on-quarter and 19% year-on-year.

Segment-wise Performance

Segment	Contribution	Growth
Commercial	36%	3% QoQ
Retail	26%	7% QoQ
Agriculture & Gold Loans	24%	4% QoQ
Corporate	14%	5% QoQ

Retail advances saw a 7% quarter-on-quarter increase, driven primarily by growth in jewel loans and mortgage loans. The agriculture loan portfolio, dominated by jewel loans (91% of the portfolio), recorded a 4% growth during the quarter.

Profitability and Margins

The bank maintained its net interest margin at 3.77%, down 9 basis points sequentially. The operating profit for the quarter stood at INR 1,017.00 crores, reflecting a 25% increase compared to the same quarter in the previous year.

Future Outlook

KVB has maintained its full-year guidance of 3.7%-3.75% for net interest margins and expects to keep gross NPAs below 1.5%. The bank opened 7 branches in the first half of FY26 and plans to open 21 more branches during the year.

B. Ramesh Babu, Managing Director and CEO of Karur Vysya Bank, commented on the results, stating, "Our sustained inclusive results across all three primary metrics - growth, profitability, and asset quality - underscore the continued strength and resilience of our performance since the year's outset."

The bank remains cautiously optimistic for the second half of FY26, focusing on managing margin pressures and closely monitoring asset quality while maintaining its growth trajectory.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.73%	+7.31%	+13.88%	+31.40%	+35.69%	+819.95%

Karur Vysya Bank , a prominent player in the Indian banking sector, has reported its financial results for the quarter ended September 30, 2025. The bank's performance shows a mix of growth in some areas and declines in others compared to the previous quarter.

Financial Highlights

Metric	Q2 FY26	Q1 FY26	Quarter-over-Quarter Change
Net Profit	₹521.45 crore	₹573.96 crore	-9.15%
Total Income	₹3,320.29 crore	₹3,015.80 crore	10.10%
Interest Earned	₹2,568.55 crore	₹2,386.53 crore	7.63%

Karur Vysya Bank reported a net profit of ₹521.45 crore for the second quarter of FY26, showing a decrease from ₹573.96 crore in the previous quarter. However, the bank's total income rose to ₹3,320.29 crore from ₹3,015.80 crore, marking a 10.10% increase. Interest earned also saw growth, increasing to ₹2,568.55 crore from ₹2,386.53 crore in the prior quarter.

Asset Quality Metrics

Metric	Q2 FY26	Q2 FY25	Year-over-Year Change
Gross NPA Ratio	0.76%	1.10%	-0.34 percentage points
Net NPA Ratio	0.19%	0.28%	-0.09 percentage points

The bank's asset quality showed improvement compared to the same period last year. The Gross Non-Performing Assets (GNPA) ratio decreased to 0.76% from 1.10% in the corresponding period of the previous year. Similarly, the Net Non-Performing Assets (NNPA) ratio improved to 0.19% from 0.28%.

Other Key Metrics

Operating expenses stood at ₹730.07 crore, up from ₹690.46 crore in the previous quarter.
Capital adequacy ratio under Basel III was reported at 16.58%.
Return on assets was 1.72% on an annualized basis.

Karur Vysya Bank operates across various segments including Treasury, Corporate/Wholesale banking, Retail banking, and other banking operations.

While the bank has shown growth in total income and interest earned, the decrease in net profit compared to the previous quarter may require attention. The improvement in asset quality metrics year-over-year indicates better management of non-performing assets. The bank's capital adequacy ratio suggests a strong capital position, which is crucial for future growth and regulatory compliance.