Karur Vysya Bank reports strong Q2 FY26 financial performance

Karur Vysya Bank reported a 15% year-on-year increase in total business to ₹2,03,216 crore for Q2 FY26. Advances grew by 15% to ₹92,724 crore and deposits by 15% to ₹1,10,492 crore. Operating profit for the half-year surged by 17% year-on-year to ₹1,823 crore, while net profit rose by 17% to ₹1,095 crore. The bank's net interest margin (NIM) for Q2 stood at 3.77%.

Asset quality parameters showed improvement, with gross non-performing assets (NPA) at 0.76% and net NPA at 0.19%. The provision coverage ratio (PCR) was 96.76%, a 67 basis points year-on-year increase. Total capital adequacy ratio (CRAR) as of September 30, 2025, was 16.58%.

The bank's retail portfolio saw significant growth, with jewel loans increasing by 69% year-on-year to ₹4,800 crore and mortgage (LAP) loans by 40% to ₹7,413 crore. Commercial banking loans under ₹5 crore constitute 68% of the commercial book, indicating a diversified portfolio.