The Karur Vysya Bank (KARURVYSYA) investor relations material

Executive summary

• Total business reached ₹2,11,647 crore as of December 31, 2025, up 16% YoY, with advances and deposits growing 17% and 16% YoY, respectively.

• Net profit for Q3 FY26 was ₹68,996 lakhs (₹690 crore), up 39% YoY; operating profit at ₹1,005 crore, up 23% YoY.

• Asset quality remains robust: gross NPA at 0.71%, net NPA at 0.19%, and provision coverage ratio at 96.56%.

• RAM verticals (retail, agriculture, MSME) constitute 86% of business, with strong growth in retail advances and commercial disbursements.

• Unaudited financial results for Q3 and nine months ended December 31, 2025, were approved by the Board and subjected to a limited review with an unqualified report.

Financial highlights

• Net interest margin (NIM) for Q3 at 3.99%, up 22 bps QoQ; net interest income grew 15% YoY to ₹1,239 crore.

• Cost-to-income ratio improved to 42.49% in Q3; return on assets (ROA) for Q3 at 2.05%, up from 1.81% sequentially.

• Other income for Q3 was ₹50,895 lakhs, up from ₹46,482 lakhs YoY.

• CASA balances up 11% YoY; term deposits up 17% YoY.

• Capital adequacy ratio (Basel III) at 16.05% as of December 31, 2025.

Outlook and guidance

• NIM for FY26 expected in the range of 3.9%-3.95%; ROA expected above 1.85%.

• Gross NPA expected to remain below 1.5%, net NPA below 1%, and slippages below 1%.

• Focus on RAM-led growth and continued digital transformation.

• Disciplined approach to asset quality and risk management.

• The bank continues to monitor regulatory changes and labour code implementation.