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

Executive summary

• Total business reached ₹1,96,024 crore as of June 30, 2025, with 5% QoQ and 15% YoY growth in both deposits and advances.

• Net profit for Q1 FY26 was ₹521 crore, up 2% QoQ and 14% YoY; operating profit up 8% YoY.

• RAM segments (retail, agriculture, MSME) now comprise 86% of advances, growing 6% QoQ and 20% YoY.

• Board proposed 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.

Financial highlights

• Net Interest Income increased 5% YoY to ₹1,080 crore; total income for Q1 FY26 was ₹301,580 lakhs, up from ₹267,288 lakhs YoY.

• Operating profit before provisions was ₹80,550 lakhs, up from ₹74,585 lakhs YoY; cost-to-income ratio at 47.22%-47.24%.

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

• Net profit for the quarter was ₹52,145 lakhs, compared to ₹45,865 lakhs in Q1 FY25.

• Earnings per share (basic) for the quarter was ₹6.48, up from ₹5.70 in Q1 FY25.

Outlook and guidance

• NIM guidance for FY26 maintained at 3.7%-3.75%; Q1 NIM at 3.86%, down 19-27 bps QoQ/YoY.

• 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 year, with some pressure expected in Q2 and Q3.

• Bonus shares to be credited or dispatched within two months from Board approval, by September 23, 2025.