The Karur Vysya Bank (KARURVYSYA) Q4 24/25 earnings summary

Executive summary

• Total business grew 14–15% year-over-year, with advances at ₹84,491 crore and deposits at ₹1,02,078 crore as of March 2025; RAM (Retail, Agriculture, MSME) verticals grew 20% and now constitute 86% of advances.

• Net profit for Q4 FY25 was ₹513 crore, with full-year net profit up 21% to ₹1,94,164 lakh; dividend declared at 130% (₹2.60 per share), subject to shareholder approval.

• Digital transactions surged 115% year-over-year, now 98% of total transactions.

• Corporate loan book declined 14% as focus shifted to higher-margin RAM segments; precious metal division wound down.

• Audited financial results for FY25 were approved by the Board with an unmodified audit opinion.

Financial highlights

• Operating profit for FY25 was ₹3,212 crore, up 20% year-over-year; Net Interest Income for FY25 was ₹4,260 crore, up 12% year-over-year.

• Net profit for FY25 was ₹1,94,164 lakh, up from ₹1,60,481 lakh in FY24.

• NIM for Q4 FY25 at 4.05%, full year at 4.09%; cost-to-income ratio at 47.77% for Q4 and 47.25% for the year.

• Gross NPA reduced to 0.76%, net NPA at 0.20%; provision coverage ratio at 96.81%.

• ROA improved to 1.73% for Q4 and 1.72% for the year; EPS for FY25 at ₹24.13, up from ₹19.99 in FY24.

Outlook and guidance

• Credit growth expected to be 2% above industry, with RAM verticals sustaining momentum.

• NIM guided at 3.7%-3.75% for FY26, with cost-to-income ratio around 50%.

• GNPA expected to remain below 1.5%, net NPA below 1%, and ROA in the 1.55-1.65% range.

• Branch expansion planned with 19 Lite and 9 regular branches in H1 FY26, mainly in South and West India.

• Focus on digital banking, technology partnerships, and ESG initiatives to drive growth.