Karur Vysya shares rose 5.51% to Rs 364.70 in intraday trading on October 16, 2026, after the Indian private-sector lender reported a 37% increase in September-quarter net profit. Earnings reached approximately Rs 788 crore, supported by higher net interest income and a sharp reduction in provisions.
Key Takeaways
- September-quarter net profit rose to Rs 788 crore from Rs 574 crore a year earlier.
- Advances grew faster than deposits, while net interest margin widened to 4.34%.
- Bad-loan ratios improved, although gross non-performing assets increased in absolute terms.
Table of Contents
- Karur Vysya shares advance after stronger quarterly earnings
- Lending growth outpaces deposit expansion
- Bad-loan ratios improve as the lending base expands
- Conclusion
Karur Vysya shares advance after stronger quarterly earnings
The bank’s September-quarter unaudited financial results, approved by its board on October 15, cover the second quarter of fiscal 2026–27. They show net profit of Rs 787.69 crore, compared with Rs 573.96 crore a year earlier and Rs 755.70 crore in the preceding quarter.
Net interest income—the difference between interest earned and interest paid—increased 19% year over year to about Rs 1,497.3 crore. Net interest margin widened by 28 basis points to 4.34%.
Lower provisions also helped profit grow faster than interest income. Provisions other than tax fell to Rs 118.53 crore from Rs 274.37 crore a year earlier, while operating profit before provisions increased to Rs 1,162.20 crore from Rs 1,017.38 crore.
The share-price quotation is an intraday observation, not a closing price.
| Item | Details |
|---|---|
| Annualized return on assets | 2.10%, compared with 1.81% a year earlier |
| Return on equity | 20.47% for the September 2026 quarter |
| Cost-to-income ratio | 40.53% |
| Basel III capital adequacy ratio | 17.97%, compared with 16.58% a year earlier |
Lending growth outpaces deposit expansion
Total business reached Rs 239,712 crore at September 30, up 17.96% year over year and 5.48% from the preceding quarter. Advances rose 20.35% annually to Rs 111,589 crore, while deposits increased 15.96% to Rs 128,123 crore.
Retail, agriculture and micro, small and medium-enterprise advances grew 20% from a year earlier. Current-account and savings-account deposits increased 15.41%, accounting for 27.52% of total deposits.
Managing Director and CEO Ramesh Babu B said key performance indicators were broadly in line with earlier guidance. Management said it would maintain its focus on calibrated growth, operational efficiency and disciplined risk management.
Bad-loan ratios improve as the lending base expands
The gross non-performing asset ratio declined to 0.69% from 0.76% a year earlier, while the net ratio eased to 0.18% from 0.19%.
Those lower ratios did not mean bad loans fell in absolute terms. Gross non-performing assets increased to Rs 765.44 crore from Rs 707.83 crore a year earlier, illustrating the distinction between the stock of problem loans and its share of a growing loan book.
Conclusion
The September results combined stronger lending and interest income with lower provisions. The next quarterly results will provide a further test of management’s stated focus on balanced growth and credit discipline; no release date was supplied.
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