Karur Vysya Bank Ltd.Net profit ₹788 Cr +37%, NIM 4.26%

Karur Vysya Bank reported Q2 FY27 net profit of ₹788 crore, up 37% year-on-year and 4% sequentially, with operating profit of ₹1,162 crore, up 14% year-on-year.

Net interest margin was 4.26%, or 4.34% including a one-off interest recovery, and net interest income grew 25% year-on-year. Total business reached ₹2,39,712 crore, up 18% year-on-year, with advances of ₹1,11,589 crore, up 7% sequentially, and deposits of ₹1,28,123 crore, up 5%. Return on assets was 2.1%, credit cost was 0.43%, gross NPA fell to 0.69% and net NPA to 0.18%, and capital adequacy was 17.97%. Management guided FY27 credit growth of 18% to 20%, net interest margin of 4% plus and return on assets of about 2%, with cost-to-income below 45% over the next two quarters.

It warned that funding costs and pricing competition could ease margins from 4.26%, said housing and vehicle loans are being held back by pricing and risk weights, and called regulatory changes to bancassurance commissions a risk to fee income.