Karur Vysya Bank surpasses business milestone, maintains healthy margins

Karur Vysya Bank reported a robust performance for the quarter and half year ended September 30, 2025, with total business reaching INR2,03,216 crores, a 4% quarter-on-quarter and 15% year-on-year increase. Advances grew to INR92,724 crores, and deposits to INR1,10,492 crores, both up 4% quarter-on-quarter and 15% year-on-year. The bank achieved a net interest margin (NIM) of 3.77%, exceeding its full-year guidance range of 3.7% to 3.75%.

The bank reported operating profit of INR1,017 crores, a 26% sequential increase, bolstered by INR205 crores in recoveries from written-off accounts and INR139 crores in interest income from the same. Gross NPAs slightly increased to 0.76% from 0.66%, while net NPA remained steady at 0.19%. The cost-to-income ratio for the half year ended was 44.76%, staying within the guided range of less than 50%.

Karur Vysya Bank's credit cost for the quarter was 0.27%, attributed to a one-time allocation of INR250 crores towards NPA migrations and restructured assets, primarily from two corporate accounts. The bank projects its gross NPA to remain below 1.5% and net NPA below 1% for the full year.