Karur Vysya Bank has launched its Capital Gains Account Scheme (CGAS) on January 9, 2026, following recent authorization from the Ministry of Finance, Government of India. The specialized facility addresses a critical need for taxpayers who have sold assets and require a compliant way to manage proceeds while maintaining tax exemption eligibility.

Scheme Overview and Purpose

The Capital Gains Account Scheme is designed for individuals and Hindu Undivided Families (HUFs) who have sold assets such as property, land, or securities. The service enables customers to deposit sale proceeds in a specialized account while remaining eligible for tax exemptions under the Income Tax Act, 1961.

Indian tax laws permit exemptions on capital gains if proceeds are reinvested within specific timeframes. However, finding suitable reinvestment opportunities often exceeds tax filing deadlines. The KVB Capital Gains Account serves as a legal safeguard, earning interest while ensuring tax regulation compliance without pressuring customers into hasty investment decisions.

Account Types and Features

The scheme offers two distinct account variants to accommodate different customer requirements and investment timelines.

The scheme integrates with Karur Vysya Bank's existing digital banking infrastructure, supporting fund transfers through UPI, NEFT, and RTGS. Account opening and operations follow applicable regulatory requirements, ensuring compliance and security for customer transactions.

Management Commentary

B. Ramesh Babu, Managing Director & CEO of Karur Vysya Bank, emphasized the scheme's strategic importance: "The launch of our Capital Gains Account scheme represents our commitment to providing comprehensive tax-planning solutions. This service bridges an important gap in the investment lifecycle allowing customers to maintain tax compliance while taking time to make informed decisions. As asset sales remain robust in the current economy, we believe this offering will be invaluable for our customers."

Bank Profile and Financial Position

Karur Vysya Bank operates an extensive network comprising 898 branches and over 2,226 ATMs and cash recyclers. The bank's financial performance as of September 30, 2025, demonstrates strong fundamentals across key metrics.

The Capital Gains Account Scheme launch reinforces Karur Vysya Bank's focus on providing specialized financial solutions that address specific customer needs while ensuring regulatory compliance and tax optimization opportunities.

Karur Vysya Bank has announced the inauguration of a new branch in Pune, marking another milestone in its network expansion strategy. The bank informed stock exchanges about this development through a regulatory filing dated January 09, 2026.

Branch Details and Location

The new branch will commence operations on January 12, 2026, and represents the bank's 899th branch in its nationwide network. The facility is strategically positioned in the Sahakar Nagar area of Pune, one of Maharashtra's key financial and commercial hubs.

Regulatory Compliance

The bank has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was communicated to both the National Stock Exchange of India Limited and BSE Limited, ensuring transparency with stakeholders and regulatory authorities.

Strategic Expansion

This branch opening reflects Karur Vysya Bank's ongoing efforts to strengthen its presence in key urban markets across India. Pune, being a major industrial and IT hub in Maharashtra, offers significant opportunities for retail and corporate banking services. The location on City Pride Road in the Parvati area positions the branch in a commercially active zone with good connectivity.

The new facility will provide comprehensive banking services to customers in the Sahakar Nagar locality and surrounding areas, contributing to the bank's customer acquisition and business growth objectives in the western region.