Karur Vysya Bank shares rally 6% after Q2 profit jumps 37% YoY

ETMarkets.com

The bank reported a net profit of Rs 788 crore in Q2, up 37% from Rs 574 crore in the corresponding quarter of the previous fiscal year.

Net interest income, which represents the difference between interest earned and interest paid, rose 19% to Rs 1,497.3 crore in the September quarter from Rs 1,261 crore a year earlier.

The bank reported broad-based business growth during the quarter ended September 30, 2026. Total business increased 17.96% YoY and 5.48% sequentially to Rs 2,39,712 crore.

Deposits grew 15.96% YoY and 4.52% quarter-on-quarter (QoQ) to Rs 1,28,123 crore, while advances rose 20.35% YoY and 6.60% QoQ to Rs 1,11,589 crore.

Advances under the retail, agriculture and micro, small and medium enterprises (RAM) segment grew 20% YoY and 6% sequentially. The bank’s current account and savings account (CASA) deposits increased 15.41% YoY and 4.40% QoQ, taking the CASA ratio to 27.52%.

The lender’s net interest margin (NIM) stood at 4.34%, improving 28 basis points year-on-year. Commission and fee income increased 11% YoY, while the cost-to-income ratio was 40.53%.

On the asset quality front, gross non-performing assets (GNPA) stood at 0.69%, while net non-performing assets (NNPA) were at 0.18%. Return on assets (ROA) came in at 2.10% for the quarter, and return on equity (ROE) stood at 20.47%.

Ramesh Babu B, Managing Director and CEO of Karur Vysya Bank, said the bank’s key performance indicators were broadly in line with its earlier guidance, supported by balanced business growth and sustained performance across growth, profitability and asset quality.

He added that the bank’s total business reached Rs 2,39,712 crore, reflecting year-on-year growth of around 18% and sequential growth of approximately 5%. Advances stood at Rs 1,11,589 crore, while deposits reached Rs 1,28,123 crore. The bank also recorded its highest-ever quarterly profit of Rs 788 crore. The management said the lender would continue to focus on calibrated growth, operational efficiency, customer centricity and disciplined risk management, while remaining mindful of the evolving operating environment.

Share Price and Technical Indicators

Karur Vysya Bank shares have gained around 60% over the past year, taking the bank’s market capitalisation to approximately Rs 34,123 crore. The stock touched a fresh 52-week high of Rs 365.90 during Friday’s trading session.

According to Trendlyne’s technical data, the stock is trading above all eight simple moving averages (SMAs), indicating a strong technical trend.