The Karur Vysya Bank (KARURVYSYA) investor relations material

Executive summary

• Q1 FY27 saw strong, broad-based growth with total business reaching INR 2,27,267 crore, up 6% QoQ and 16% YoY, reflecting disciplined execution across growth, profitability, and asset quality priorities.

• Advances grew 17% YoY and deposits 15% YoY; net profit rose 45% YoY and 4% QoQ, with operating profit up 36% YoY.

• Asset quality remained robust with GNPA at 0.74% and NNPA at 0.19%, among the lowest in the sector.

• Digital adoption continues to drive efficiency, with 98% of transactions served digitally.

• Unaudited financial results for the quarter ended June 30, 2026, were approved by the Board on July 20, 2026, and subjected to a limited review with an unmodified conclusion by joint statutory auditors.

Financial highlights

• Net interest income grew 32% YoY and 5% sequentially, the highest YoY growth in five years; total income for Q1 FY27 was ₹349,121 lakh, up from ₹301,580 lakh in Q1 FY26.

• Operating profit before provisions and contingencies stood at ₹109,560 lakh, up from ₹80,550 lakh year-over-year.

• Non-interest income stood at INR 442 crore, down 28% QoQ, mainly due to lower recoveries and trading profits.

• Net interest margin (NIM) was 4.26%, up 1 bps QoQ.

• Cost-to-income ratio improved to 41.79% from 47.24% YoY; OpEx rose 6% QoQ, mainly due to higher retirement benefit provisions.

Outlook and guidance

• Credit growth guidance remains 1-2% above industry; NIM for FY27 guided at 3.7%-3.8%.

• GNPA expected to stay below 1.5%, net NPA below 1%, and slippage ratio below 1%.

• Focus on prudent provisioning, digital banking expansion, and maintaining strong capital adequacy.

• NIM expected to remain above 4% in the near term, with full-year guidance to be reviewed after Q2.

• Continued emphasis on asset quality and risk management.