The Karur Vysya Bank (KARURVYSYA) Q2 26/27 earnings summary

Executive summary

• Total business reached ₹2,39,712 crore at Sep. 30, 2026, up 18% YoY; advances rose 20% to ₹1,11,589 crore and deposits increased 16% to ₹1,28,123 crore.

• Q2 net profit was ₹78,769 lakh, up 37% YoY; H1 net profit rose 41% to ₹1,54,339 lakh, with asset quality remaining strong.

Financial highlights

• Q2 net interest income was ₹1,497 crore, up 19% YoY; H1 NII rose 25% to ₹2,920 crore.

• Q2 operating profit increased 14% to ₹1,162 crore; H1 operating profit rose 24% to ₹2,258 crore.

• Q2 provisions fell 57% YoY to ₹118 crore and H1 provisions declined 47% to ₹209 crore; Q2 PBT grew 41% to ₹1,044 crore.

• Q2 total income was ₹3,670.21 crore and operating profit before provisions and contingencies was ₹1,162.20 crore.

Outlook and guidance

• FY27 credit growth target is 18%-20%, with calibrated growth; management cautioned that 13% YTD advance growth is not a full-year indicator.

• FY27 NIM guidance is 4%+; management expects to remain above 4% over the next two quarters, while acknowledging pricing pressure and lower margins than Q2.

• FY27 ROA guidance is above 2%; GNPA below 1.5%, NNPA below 1%, slippages below 1% and cost-to-income below 45% over the next two quarters.

• 50 branches are planned for FY27: 20 opened in H1, with 26 more targeted before Q3 ends and the remainder by year-end.