The Karur Vysya Bank (KARURVYSYA) Q1 25/26 earnings summary

Executive summary

• Total business reached INR 196,024 crores as of June 30, 2025, with 5% QoQ and 15% YoY growth, driven by advances and deposits.

• Net profit for Q1 FY26 was INR 521 crores, up 2% QoQ and 14% YoY.

• Board approved a 1:5 bonus share issue, subject to shareholder and regulatory approval, with a record date of August 26, 2025.

• Maintained a strong pan-India presence with 888 branches and 2,226 ATMs as of June 2025.

• Unaudited financial results for the quarter ended June 30, 2025, were approved by the Board on July 24, 2025.

Financial highlights

• Operating profit for the quarter was INR 805 crores, up 8% YoY but down 3% sequentially.

• Net interest margin (NIM) stood at 3.86%, down 19 bps QoQ and 27 bps YoY, but above guided range.

• Non-interest income was INR 447 crores, down from INR 509 crores in the previous quarter.

• Cost-to-income ratio at 47.22%-47.24%, within the guided sub-50% range.

• ROA for the quarter was 1.73%, above the guided 1.55%-1.65% range.

Outlook and guidance

• NIM guidance for FY26 maintained at 3.7%-3.75%.

• Credit growth expected to be 2% above industry average for the year.

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

• ROA projected at 1.55%-1.65% for the full year, with some pressure expected in Q2 and Q3.

• Focus on digital banking expansion, with 25% YoY growth in digital transactions and 92% of transactions served digitally.