Karur Vysya Bank Q1 profit rises 45% as NIM improves and asset quality edges up

Shares of Karur Vysya Bank rallied as much as 10.6% to their day’s high of Rs 333 on the BSE on Tuesday after the lender reported a 44.92% YoY jump in net profit to Rs 756 crore in the first quarter, compared with Rs 521 crore a year earlier. Pre-provision operating profit (PPOP) rose 36.15% YoY to Rs 1,096 crore from Rs 805 crore, while net interest income increased 31.76% YoY to Rs 1,423 crore from Rs 1,080 crore. Net interest margin (NIM) improved to 4.34% from 3.86% in the year-ago quarter. The cost of deposits declined by 32 bps to 5.45% from 5.77%, while the yield on advances increased by 11 bps to 10.11% from 10%, the company said in a regulatory filing. Commission and fee income rose 7.57% YoY to Rs 270 crore from Rs 251 crore. Operating expenses increased to Rs 769 crore from Rs 721 crore in the corresponding quarter last year, while the cost-to-income ratio improved to 41.24% from 47.24%.Karur Vysya Bank asset qualityOn asset quality, gross non-performing assets (GNPA) stood at 0.74% of gross advances as of June 30, 2026, compared with 0.66% a year earlier, though the ratio was lower by 1 bp QoQ. In absolute terms, GNPA stood at Rs 772 crore, up from Rs 593 crore as of June 30, 2025. Net NPA (NNPA) remained at 0.19%, unchanged from a year earlier, while the absolute figure stood at Rs 196 crore compared with Rs 170 crore. The provision coverage ratio (PCR) stood at 96.21% as of June 30, 2026, compared with 96.76% a year earlier.Karur Vysya Bank's total business stood at Rs 2.27 lakh crore as of June 30, 2026, up 15.94% YoY from Rs 1.96 lakh crore a year earlier, an increase of Rs 31,243 crore. Total deposits rose 14.94% YoY to Rs 1.22 lakh crore from Rs 1.06 lakh crore, while total advances grew 17.13% YoY to Rs 1.04 lakh crore from Rs 89,374 crore, an increase of Rs 15,306 crore.Also read:SBI Funds Management shares list at 7% premium over IPO priceKarur Vysya Q1 management commentaryRamesh Babu B, Managing Director and CEO of Karur Vysya Bank, said the bank's performance indicators were in line with its earlier guidance. He said the bank had front-loaded growth in the first quarter of the financial year, in line with its approach in recent years. He added that consistent performance across growth, profitability and asset quality reflected the strength of the bank's performance since the start of the year.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Karur Vysya Bank announced a significant 45% rise in first quarter net profit. This increase brought their earnings to ₹756 crore compared to the previous year. The bank's pre-provision operating profit also saw a substantial 36% jump. Net interest income grew by 32%, boosting overall financial performance. However, the bank's gross non-performing assets experienced a slight increase.

Mumbai: Karur Vysya Bank reported a standalone net profit of ₹755.70 crore for the quarter ended 30 June 2026, marking a 44.91% increase compared to ₹521.45 crore in the corresponding period of the previous fiscal year. The bank announced its unaudited financial results on Monday.Income and ExpensesThe total standalone income for the quarter stood at ₹3,491.21 crore, up from ₹3,015.80 crore in the same quarter last year. Interest earned by the bank increased to ₹3,049.42 crore for the June 2026 quarter.Total expenditure for the period, excluding provisions and contingencies, was ₹2,395.61 crore. This includes interest expended of ₹1,626.67 crore and operating expenses of ₹768.94 crore.Karur Vysya Bank Reports 14.92% Total Business Growth For FY26 With Advances Surge Asset QualityKarur Vysya Bank's gross non-performing assets (GNPA) stood at 0.74% as of 30 June 2026, a slight improvement from 0.75% as of 31 March 2026. Net non-performing assets (NNPA) remained stable at 0.19% for both periods.Capital Adequacy and RatiosThe capital adequacy ratio under Basel III was 18.61% as of 30 June 2026, compared to 17.36% a year ago. Basic earnings per share (EPS) for the quarter was ₹7.82, up from ₹5.40 in the previous year's corresponding quarter.Provision Coverage RatioThe bank's provision coverage ratio was 96.21% as on 30 June 2026. This compares to 96.76% for the corresponding period of the previous year.Disclaimer: This report is based on the company's filed financial results (standalone or consolidated, as applicable) and is intended solely for informational purposes. It does not constitute investment advice or a recommendation to buy, sell or hold any security.

Karur Vysya Bank saw an operating profit of Rs 1,096 crore on a year-on-year basis for its Q1FY26-27 results.