Total Business
₹2,14,420 crore
+15% YoY
Total business (advances + deposits) grew 15% YoY to ₹2.14 lakh crore.
KARURVYSYABANK
Financial Services
23 Apr 2026
Karur Vysya Bank Ltd — Q4 FY26
Karur Vysya Bank delivered a strong Q4 FY26 with net profit of ₹2,500 crore for the full year, up 29% YoY, and quarterly PAT of ₹725 crore — both all-time highs.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Karur Vysya Bank delivered a strong Q4 FY26 with net profit of ₹2,500 crore for the full year, up 29% YoY, and quarterly PAT of ₹725 crore — both all-time highs. Full-year NIM came in at 3.97%, above the revised guidance of 3.75-3.80%, aided by a 9bps sequential reduction in cost of funds and 16bps increase in advance yields. Asset quality remained robust with GNPA at 0.75% and net NPA at 0.19%. Management guided for FY27 credit growth of 1-2% above industry, NIM of 3.75-3.80%, and ROA of 1.7-1.8%, reflecting cautious optimism amid geopolitical uncertainties. A key risk is potential margin compression from rising deposit costs and competitive pressure on lending yields, which could pressure profitability if not managed carefully.
Key Numbers
CASA Growth
₹3,290 crore incremental
+12% YoY
Highest CASA growth in 10 years, with demand deposits up 10% and savings deposits up 13%.
Gold Loan Share
30% of advances
+5pp YoY
Gold loan portfolio increased to 30% of total advances, with internal cap at 35%.
Fixed Rate Loan Mix
29% of advances
+6pp QoQ
Fixed rate loan book increased from 23% to 29% sequentially, supporting yield improvement.
Management Guidance
NIM guidance of 3.75-3.80% for FY27
Net interest margin expected to moderate to 3.75-3.80% for full year FY27 due to rising deposit costs and competitive pressure on lending yields.
Management guidance marginsCredit growth 1-2% above industry
Loan book growth expected to be 1-2% higher than industry growth, implying around 15-16% growth, with focus on RAM verticals.
Management guidance growthROA guidance of 1.7-1.8% for FY27
Return on assets expected between 1.7% and 1.8% for FY27, down from 1.93% in FY26, due to margin compression and higher opex.
Management guidance marginsCredit cost below 1% for FY27
Credit cost expected to be less than 1% for FY27, supported by strong asset quality and adequate provisions.
Management guidance otherKey Risks
Geopolitical tensions impacting specific sectors
Bank has made ₹163 crore one-time provisions for sectors like textiles, ceramics, chemicals, and granite that could be affected by geopolitical tensions and tariff issues.
medium · management_commentaryMargin compression from rising deposit costs
Management expects NIM to decline to 3.75-3.80% in FY27 due to higher retail deposit rates (7.2% for new product) and competitive pressure on lending yields.
high · analyst_questionPotential impact of ECL provisioning transition
RBI's final ECL provisioning guidelines may increase credit costs; management expects minimal impact but has not quantified steady-state effect.
medium · analyst_questionGold price volatility risk
Gold loan portfolio at 30% of advances; a sharp decline in gold prices could trigger margin calls and increase NPAs, though LTV is conservative at 55-60%.
medium · analyst_questionNotable Quotes
Our performance indicators for the financial year 2526 are fully aligned with the guidance provided at the outset of the year.
We may need to compromise on margins to some extent in retail assets. Our main goal is to further enhance collaboration between branches and the open market channel.
The bank has become so robust to take these sort of shocks. It should not be a problem.
Frequently Asked Questions
What was Karur Vysya Bank's revenue in Q4 FY26?
Karur Vysya Bank reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Karur Vysya Bank management give for FY27?
NIM guidance of 3.75-3.80% for FY27: Net interest margin expected to moderate to 3.75-3.80% for full year FY27 due to rising deposit costs and competitive pressure on lending yields. Credit growth 1-2% above industry: Loan book growth expected to be 1-2% higher than industry growth, implying around 15-16% growth, with focus on RAM verticals. ROA guidance of 1.7-1.8% for FY27: Return on assets expected between 1.7% and 1.8% for FY27, down from 1.93% in FY26, due to margin compression and higher opex. Credit cost below 1% for FY27: Credit cost expected to be less than 1% for FY27, supported by strong asset quality and adequate provisions.
What are the key risks for Karur Vysya Bank in FY27?
Key risks include Geopolitical tensions impacting specific sectors — Bank has made ₹163 crore one-time provisions for sectors like textiles, ceramics, chemicals, and granite that could be affected by geopolitical tensions and tariff issues.; Margin compression from rising deposit costs — Management expects NIM to decline to 3.75-3.80% in FY27 due to higher retail deposit rates (7.2% for new product) and competitive pressure on lending yields.; Potential impact of ECL provisioning transition — RBI's final ECL provisioning guidelines may increase credit costs; management expects minimal impact but has not quantified steady-state effect.; Gold price volatility risk — Gold loan portfolio at 30% of advances; a sharp decline in gold prices could trigger margin calls and increase NPAs, though LTV is conservative at 55-60%..
Did Karur Vysya Bank meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Karur Vysya Bank Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.