Karur Vysya Bank Q1 net profit rises 14% to ₹521 crore; board okays 1:5 bonus issue

Private sector Karur Vysya Bank Ltd on Thursday (July 24) reported a 13.5% year-on-year increase in net profit at ₹521 crore for the first quarter of FY26. The lender had posted a net profit of ₹459 crore in the same quarter last year.

Net interest income (NII) rose 5.1% YoY, coming at ₹1,080 crore against ₹1,027 crore in Q1FY25.

Karur Vysya Bank reported a 15.27% YoY growth in its balance sheet, with total assets standing at ₹1,25,371 crore as of June 30, 2025, compared to ₹1,08,766 crore a year earlier. The bank’s total business reached ₹1,96,024 crore, marking an increase of ₹25,965 crore from ₹1,70,059 crore in the same period last year.

Also Read: Karur Vysya Bank Q1 business update: Stock gains as deposits, advances jump 15%

Total deposits crossed the ₹1 lakh crore milestone and stood at ₹1,06,650 crore as of June 30, 2025, registering a YoY growth of 15.49% from ₹92,349 crore. Advances grew 15.01% YoY to ₹89,374 crore, up from ₹77,710 crore in the June quarter of FY25.

Net interest margin for the quarter stood at 3.86%, compared to 4.14% in the same quarter last year. The cost of deposits increased by 29 basis points to 5.77%, while the yield on advances declined by 12 basis points to 10%. Commission and fee-based income rose 5.02% YoY to ₹251 crore, and operating expenses increased to ₹721 crore from ₹667 crore in the year-ago quarter. The cost-to-income ratio remained largely flat at 47.24% versus 47.20% last year.

The bank’s capital adequacy ratio (CRAR) under Basel III norms improved to 17.36%, up from 16.47% a year earlier. Tier 1 capital stood at 16.33%, compared to 15.58% in the previous year. Risk-weighted assets rose to ₹69,441 crore from ₹62,352 crore.

Also Read: Karur Vysya Bank eyes 13% deposit growth in FY26, sees momentum in retail loans

The asset quality improved, with gross non-performing assets (GNPA) reducing to 0.66% of gross advances (₹593 crore) from 1.32% (₹1,025 crore) last year. Net NPA declined to 0.19% (₹170 crore) from 0.38% (₹294 crore). Provision coverage ratio improved to 96.76% from 94.91%.

The bank’s board of directors approved the issuance of bonus equity shares in the ratio of 1:5, i.e., one equity share of ₹2 each for every five fully paid-up equity shares held, subject to shareholders’ approval.

The results came after the close of the market hours. Shares of Karur Vysya Bank Ltd ended at ₹271.50, up by ₹0.50 or 0.18%, on the BSE.

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