The Karur Vysya Bank (KARURVYSYA) Q4 25/26 earnings summary

Executive summary

• Performance indicators for FY 2025-26 fully aligned with guidance, surpassing targets in growth, profitability, and asset quality.

• Total business reached INR 2,14,420 crore as of March 31, 2026, up 15% year-over-year, with advances up 17% and deposits up 13%.

• Net profit for FY26 rose 29% year-over-year to INR 2,510 crore; Q4 net profit was INR 725 crore.

• Asset quality maintained with gross NPA at 0.75% and net NPA at 0.19%.

• Digital transactions grew 22% year-over-year, with 97% of transactions served digitally.

Financial highlights

• Operating profit for FY26 was INR 4,075 crore, up 27% year-over-year; Q4 operating profit was INR 1,247 crore.

• Net Interest Margin (NIM) for FY26 at 3.97% (excluding one-offs); Q4 NIM at 4.25%.

• Cost-to-income ratio improved to 42.96% for FY26 from 47.25% in FY25.

• Return on Assets (ROA) for FY26 at 1.93%; Q4 ROA at 2.10%.

• Earnings per share (EPS) for FY26 at INR 25.98, up from INR 20.10 in FY25.

Outlook and guidance

• FY 2027 credit growth expected to be 1-2% above industry; deposit growth to align with credit needs and LCR targets.

• NIM guidance for FY 2027 set at 3.75%-3.8% due to rising deposit costs and competitive pressures.

• ROA expected between 1.7%-1.8%; credit cost to remain below 1%.

• GNPA to be kept below 1.5%, net NPA below 1%, and cost-to-income ratio below 50%.

• 50 new branches planned for expansion in FY 2027.