Oct 15: Karur Vysya Bank has announced its financial results for the quarter ended September 30, 2026, reporting growth in business, advances, deposits, and profitability, alongside improvements in asset quality and operating efficiency.

The Bank’s total business increased by 17.96% year-on-year to ₹2,39,712 crore, while total advances grew by 20.35% to ₹1,11,589 crore. Deposits rose by 15.96% to ₹1,28,123 crore compared with the corresponding period of the previous year.

For Q2 FY27, net profit increased by 37.28% YoY to ₹788 crore, compared with ₹574 crore in Q2 FY26. Net interest income grew by 18.72% to ₹1,497 crore from ₹1,261 crore in the corresponding quarter of the previous year. The Bank’s net interest margin stood at 4.34%, compared with 4.24% in Q2 FY26.

Pre-provision operating profit for the quarter increased by 14.26% to ₹1,162 crore from ₹1,017 crore in the corresponding quarter of the previous year. Commission and fee-based income grew by 14.62% YoY to ₹290 crore from ₹253 crore.

The cost of deposits declined by 11 basis points to 5.49%, compared with 5.60% in Q2 FY26, while the yield on advances decreased to 10.20% from 10.38%. The cost-to-income ratio improved to 39.85%, compared with 42.63% in the corresponding quarter of the previous year.

H1 FY27 Financial Performance

For the half year ended September 30, 2026, the Bank recorded net profit growth of 40.91% to ₹1,543 crore from ₹1,095 crore in the corresponding period of the previous year.

PPOP increased by 23.86% to ₹2,258 crore from ₹1,823 crore, while net interest income grew by 24.73% to ₹2,920 crore from ₹2,341 crore. The net interest margin stood at 4.34%, an improvement of 28 basis points compared with 4.06% in the corresponding half year of the previous year.

Commission and fee-based income rose by 11% to ₹561 crore from ₹504 crore. The cost of deposits decreased by 22 basis points to 5.47% from 5.69%, while the yield on advances stood at 10.15%, compared with 10.19% in the corresponding period of the previous year.

Operating expenses for the half year amounted to ₹1,539 crore, compared with ₹1,477 crore in the previous year. The cost-to-income ratio improved to 40.53% from 44.76%.

Statement from the Managing Director and CEO

Mr. Ramesh Babu B, Managing Director and CEO of Karur Vysya Bank, said,

 “We are pleased to report that our key performance indicators are broadly in line with the guidance shared earlier. The business growth has been balanced and broad-based, with sustained performance across our three key priorities: growth, profitability, and asset quality. This reflects the continued strength and resilience of our operating performance since the year's outset.

“The bank’s total business reached Rs 2,39,712 crore, reflecting our continued growth momentum in the second, with an overall business increase of 5% (QOQ) and a year-on-year growth of 18%. Our Advances stood at Rs 1,11,589 crore, representing a growth of 7% (QOQ), while deposits increased to Rs 1,28,123 crore, achieving a (QOQ) growth rate of 4%. Building on its strong performance, the Bank recorded its highest profit of Rs.788 crore.

“While we remain mindful of the evolving operating environment, our focus remains steady on prudent calibrated growth, operational efficiency, customer centricity, and disciplined risk management. This approach gives us confidence in delivering sustainable value to all stakeholders.”

Balance Sheet Performance

The Bank’s balance sheet size stood at ₹1,50,831 crore as of September 30, 2026, compared with ₹1,30,099 crore as of September 30, 2025, registering growth of 15.94%.

Total business increased by 17.96% YoY to ₹2,39,712 crore from ₹2,03,216 crore, an increase of ₹36,496 crore.

Total deposits rose by 15.96% to ₹1,28,123 crore from ₹1,10,492 crore, representing an increase of ₹17,631 crore. Total advances grew by 20.35% to ₹1,11,589 crore from ₹92,724 crore, an increase of ₹18,865 crore.

Advances under the Retail, Agriculture and MSME (RAM) segment grew by 20% YoY and 6% quarter-on-quarter (QoQ). The CASA balance increased by 15.41% YoY and 4.40% QoQ, with the CASA ratio standing at 27.52%.

Capital Adequacy

The Bank’s Capital Adequacy Ratio (CRAR), under Basel III guidelines, stood at 17.97% as of September 30, 2026, compared with 16.58% a year earlier, against a regulatory requirement of 11.50%.

Tier 1 capital stood at 17.32%, compared with 15.58% as of September 30, 2025. Risk-weighted assets increased to ₹87,496 crore from ₹72,498 crore during the same period.

Asset Quality

The Bank continued to report low levels of non-performing assets. Gross non-performing assets  stood at 0.69% of gross advances as of September 30, 2026, compared with 0.76% a year earlier. GNPA amounted to ₹765 crore, compared with ₹708 crore as of September 30, 2025.

Net non-performing assets stood at 0.18% of net advances, compared with 0.19% in the corresponding period of the previous year. NNPA amounted to ₹199 crore, compared with ₹176 crore a year earlier.

The Provision Coverage Ratio  stood at 96.13% as of September 30, 2026, compared with 96.76% as of September 30, 2025.

Branch Network and Distribution

As of September 30, 2026, Karur Vysya Bank operated 921 branches and one Digital Banking Unit, along with 2,192 ATMs and cash recyclers. As of September 30, 2025, the Bank had 895 branches, one Digital Banking Unit, and 2,225 ATMs and cash recyclers.

Of the Bank’s total branches, 54.29% are located in semi-urban and rural areas.