Karur Vysya Bank · forward-looking guidance across the available source record.
Guidance tracker
Management maintained guidance of 1-2% above industry credit growth, noting system growth has accelerated to ~18%. However, the bank will remain selective, avoiding corporate repricing race that defeated earlier diversification efforts.
Despite Q1 NIM of 4.26% (above guidance range), management retained conservative full-year NIM guidance pending Q2 review. Near-term visibility suggests NIM at ~4% in Q2 before potential normalization.
Management reiterated full-year guidance for gross NPA below 1.5%, net NPA below 1%, and slippage ratio below 1%. Q1 gross slippage annualized at 1.3% remains within target.
Management targets ₹500-600 crore recovery from written-off accounts annually, noting quarterly variation is natural due to external and legal factors. Q1 recovery at ₹103 crore versus ₹216 crore in Q4 was lower but expected.
Bank plans to open 50 branches in first half (25 each quarter) versus 13 branches in entire FY26, focusing on extending relationship model to more branches. Cost-to-income may rise 0.5-1% due to branch expansion.
Despite 25bps December rate cut affecting Q4 fully, management expects NIM expansion from Q3's 3.88% YTD (excluding Q2 one-off) to 3.9-3.95% range for FY26. Deposit repricing tailwind moderates but fixed-rate asset mix provides offset.
Raised from earlier ~1.65-1.60% guidance, reflecting Q3's 2.05% ROA delivery and management confidence in sustaining improved trajectory. Nine-month ROA stands at 1.87%.
Gross NPA reduced to 1.71% from 2.76% YoY. Net NPA stable at 1.19%. Standard restructured portfolio at 0.45% of loans with 44% provision. No anticipated bunching in any vertical.
Management reaffirms targeting above-industry credit growth for FY26. All loan verticals—retail, commercial, agri, corporate—are firing. Constraint is funding (deposit growth) rather than demand.