The Karur Vysya Bank (KARURVYSYA) Q2 25/26 earnings summary

Executive summary

• Achieved 15% year-over-year growth in advances and deposits, with total business at INR 2,32,160 crore as of September 30, 2025, and net profit for Q2 at INR 574 crore, up 21% YoY.

• Unaudited financial results for the quarter and half year ended September 30, 2025, were approved by the Board and subjected to a limited review with an unqualified report from joint auditors.

• Growth, profitability, and asset quality remain strong and aligned with prior guidance, with GNPA at 0.76% and NNPA at 0.19%.

• Bonus shares were allotted during the quarter, and EPS figures have been restated accordingly.

• Cautiously optimistic outlook for H2 FY26, focusing on margin management and asset quality.

Financial highlights

• Advances at INR 92,724 crore and deposits at INR 1,10,492 crore, both up 4% QoQ and 15% YoY; total income for Q2 FY26 was ₹332,029 lakhs, up from ₹285,601 lakhs in Q2 FY25.

• Net profit for Q2 FY26 was ₹57,396 lakhs, up from ₹47,360 lakhs in Q2 FY25; operating profit for the quarter at INR 1,017 crore, up 25% YoY.

• Net Interest Income grew 19% YoY to ₹1,261 crore for Q2; NIM at 3.77% for Q2, down 9 bps QoQ and 35 bps YoY.

• Cost-to-income ratio for H1 at 44.76%, within the guided range; improved to 42.63% from 46.72% YoY.

• CASA balances crossed INR 30,000 crore, up 4% QoQ and 8% YoY, with CASA ratio at 27.65%.

Outlook and guidance

• Credit growth expected to be 2% above industry growth, with NIM guidance for FY26 at 3.7%–3.75%.

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

• ROA guidance for the year at 1.55%–1.65%.

• Management highlights continued focus on digital transformation, sustainable growth, and asset quality.

• Pillar 3 disclosures under Basel III, including NSFR, will be made available on the bank’s website.