Chennai : Karur Vysya Bank (KVB) has announced a strong financial performance for the quarter ended June 30, 2026, reporting its highest-ever quarterly net profit of ₹756 crore, a 44.92% year-on-year (YoY) increase, driven by robust business growth, improved profitability, strong asset quality and sustained operational efficiency.
The Bank’s total business expanded to ₹2,27,267 crore, registering a 15.94% YoY growth and a 5.99% quarter-on-quarter (QoQ) increase. Deposits grew to ₹1,22,587 crore, up 14.94% YoY, while the loan book crossed the ₹1 lakh crore milestone, reaching ₹1,04,680 crore, reflecting a 17.13% YoY growth.
Announcing the results, Mr. Ramesh Babu B, Managing Director & CEO, Karur Vysya Bank, said: “We are pleased to report that our performance indicators align with our previously issued guidance. We successfully front-loaded growth in the first quarter of this financial year, consistent with our approach over recent years. Our sustained and inclusive results across all three key metrics—growth, profitability, and asset quality—demonstrate the ongoing strength of our performance since the beginning of the year.”
He further added that the Bank’s total business crossed ₹2.27 lakh crore, with advances surpassing the ₹1 lakh crore mark for the first time. Deposits also witnessed healthy growth, enabling the Bank to record its highest-ever quarterly profit of ₹756 crore.
Robust Growth Across Key Business Segments
The Bank continued to strengthen its Retail, Agriculture and MSME (RAM) portfolio, with the segment recording an 18% YoY growth and 6% sequential growth during the quarter.
Current Account Savings Account (CASA) deposits increased by 15.25% YoY and 8.53% QoQ, with the CASA ratio improving to 27.55%, highlighting continued customer confidence and a stable low-cost deposit base.
Net Interest Income (NII) grew 31.76% YoY to ₹1,423 crore, while Net Interest Margin (NIM) improved to 4.34%, an increase of 48 basis points over the corresponding quarter of the previous year.
Pre-Provision Operating Profit (PPOP) rose 36.15% YoY to ₹1,096 crore, reflecting strong operational efficiency. Commission and fee-based income also increased 7.57% YoY to ₹270 crore.
The Bank further improved its efficiency, reducing its Cost-to-Income Ratio to 41.24% compared to 47.24% in the corresponding quarter last year.
Strong Capital Position and Healthy Asset Quality
Karur Vysya Bank maintained one of the strongest capital positions in the industry, with its Capital Adequacy Ratio (CRAR) under Basel III improving to 18.61%, significantly above the regulatory requirement of 11.50%. The Bank’s Common Equity Tier-I (CET-1) ratio stood at 17.98%.
Asset quality remained robust despite continued business expansion. Gross Non-Performing Assets (GNPA) stood at 0.74%, while Net Non-Performing Assets (NNPA) remained at a low 0.19%. The Provision Coverage Ratio (PCR) remained healthy at 96.21%, reflecting prudent risk management practices.
Expanding Banking Network
As part of its continued expansion strategy, the Bank increased its physical presence to 903 branches, one Digital Banking Unit, and 2,169 ATMs/Cash Recyclers across the country. More than 55% of its branches are located in semi-urban and rural areas, reinforcing the Bank’s commitment to financial inclusion. Additionally, the Bank operates through 338 Business Correspondents, strengthening its outreach across underserved markets.
Key Financial Highlights – Q1 FY27
- Net Profit: ₹756 crore, up 44.92% YoY
- Total Business: ₹2,27,267 crore, up 15.94% YoY
- Deposits: ₹1,22,587 crore, up 14.94% YoY
- Advances: ₹1,04,680 crore, up 17.13% YoY
- PPOP: ₹1,096 crore, up 36.15% YoY
- Net Interest Income: ₹1,423 crore, up 31.76% YoY
- Net Interest Margin: 4.34%
- CASA Ratio: 27.55%
- Return on Assets (ROA): 2.11%
- Return on Equity (ROE): 20.24%
- GNPA: 0.74%
- NNPA: 0.19%
- Capital Adequacy Ratio (CRAR): 18.61%
With sustained growth across deposits, advances and profitability, coupled with disciplined risk management and strong capital adequacy, Karur Vysya Bank continues to strengthen its position as one of India’s best-performing private sector banks.