The Karur Vysya Bank (KARURVYSYA) Q4 25/26 earnings summary

Executive summary

• Performance indicators for FY 2025-26 surpassed targets, with advances up 17% YoY and deposits up 13% YoY, total business reaching INR 2,14,420 crore.

• Net profit for FY26 rose 29% YoY to INR 2,510 crore, the highest in the bank's history.

• Asset quality remained strong with GNPA at 0.75% and NNPA at 0.19% as of March 2026.

• Digital transactions grew 22% YoY, with 97-98% of transactions served digitally.

• Audited financial results for FY 2025-26 were approved by the Board with an unmodified audit opinion.

Financial highlights

• Operating profit for FY26 was INR 4,075 crore, up 27% YoY; Q4 operating profit up 49% YoY.

• Net Interest Income for FY26 increased 16% YoY to INR 4,939 crore; Q4 NII up 25% YoY.

• Return on Assets (ROA) for FY26 at 1.93%; Q4 ROA at 2.10%.

• Cost-to-income ratio improved to 42% for FY26; Q4 at 37%.

• Capital adequacy ratio (Basel III) as of March 31, 2026, was 18.76%.

Outlook and guidance

• FY 2027 credit growth expected to be 1-2% above industry; deposit growth to align with credit needs.

• NIM guidance for FY 2027 set at 3.75%-3.8%, reflecting higher deposit costs and competitive pressures.

• ROA expected between 1.7%-1.8%; credit cost to remain below 1%.

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

• Board recommended a dividend of Rs. 2.60 per share for FY 2025-26, maintaining the previous year's payout.