Karur Vysya Bank

“Our net NPA reduced by 1 basis point to 0.18%, and we are committed to maintaining net NPA at below 1% of our loan portfolio.”

“The Commercial business segment continued to demonstrate an 8% growth over the previous quarter, driven by higher disbursements in both small business group and business banking group.”

“Retail advances increased by 5% quarter-on-quarter, primarily driven by growth in mortgage loans and personal loans”

“Mortgage loans registered a growth of 12% over the previous quarter. Personal loans grew by 11% over the previous quarter, driven by secured PL and unsecured business loans equally.”

“Retail jewel loans marginally declined by 1% during the quarter. We did not reduce the pricing in retail jewel loan segment to have a calibrated growth and hence, declined sequentially.”

“The agriculture loan portfolio recorded a growth of 4% during the quarter.”

“Favorable expectation of the monsoon in the third quarter, coupled with favorable growth indicators of the growth in Agri inputs, the overall outlook remains neutral.”

“Our working capital utilization for the last 1, 1.5 years is in the range of 76% to 79%.”

“Regarding the capex, what you mentioned, we are not finding as far as the types of customers and the sectors we are handling, nothing much capex we have seen.”

“What all we are getting is from the fresh acquisitions, it can be the new to business or takeovers.”

“The growth came predominantly in sectors like engineering, wholesale trade, commercial real estate, metal products, retail trade, textiles and transport operators.”

“I am pleased to report that we were able to maintain our net interest margin at 4.26% for this quarter also.”

“The cost of deposits increased marginally by 4 basis points on a sequential basis as rates of deposits were increased during the first quarter.”

“The yield on advances increased by 8 basis points during this quarter and remained at 10.09%.”

“EBLR book increased from 55% to 57% compared to the previous quarter. The fixed rate loan book remained at 34% and MCLR-linked book reduced from 9% to 7%.”

“Net interest income has grown by 25% year-on-year and 5% sequentially.”

“Consequently, CASA balance increased by INR1,489 crores during Q2, supported by strong traction in operating accounts, transaction banking relationships.”

“Existing customers contributed nearly to 60% of the incremental CASA growth, while new customer acquisition accounted for the balance.”

“retail TD contributing nearly 73% of the total deposits, term deposits and with RTD growing at 6% quarter-on-quarter with the quarterly growth of INR3,902 crores.”

“The RBI's relaxation on FCNRB interest rate ceilings has enabled the bank to source incremental FCNRB deposits of around INR680 crores during this quarter, indicating smaller uptick in the NRI business.”

“Our CRAR Basel III continues to be healthy and is at 17.97%, providing us comfortable headroom for growth.”

“Tailor-made products such as GST surrogate for customers with limited financial data and open term loan product started during the March quarter have crossed INR450 crores outstanding at the end of this quarter.”

“We are not yet there in the used vehicle. We are working on that particular project, and we may be able to get that.”

“Board is equally abreast of looking for the successor. So they are working both internal as well as external candidates and all. So, a search committee has already been formed.”

“Sufficient overlap will be there between the current MD as well as the successor also, that should not be a problem.”

“If you look at including the one-off recovery, so interest recovery, 8 basis points from the written-off accounts, it comes to 4.34%.”

“As discount rates went up by 40 basis points during the quarter, AS-15 requirements were lower by INR28 crores compared to previous quarter. This compensated the increase in core salary costs, which went up by 8% due to DA increase and ESOP related provisions.”

“So with this INR82 crores also, we are able to show an ROA of 2.1%.”

“The overall LTV is maintained at 67% for Agriculture Gold loans and 59% for non-Agri Gold loans as on 30th September 2026.”

“Our endeavor is to keep the same between 35% of the total advances or 32% in terms of the total exposure levels.”

“Funding costs are likely to remain under upward pressure due to RBI's policy tightening, liquidity absorption and competition for deposits.”

“As the market is flushed with liquidity on account of FCNRB flows, we expect huge competition in pricing from few banks, and it may bring down the yield going forward.”

“During the quarter under review, an allocation of INR94 crores was made towards NPA migrations, standard assets, restructured assets and INR25 crores additionally, we have provided towards the floating provisions, resulting in a credit cost of 0.43% on an annualized basis.”

“We opened 20 branches, including 2 branches in the first quarter during the half year ended September 2026.”

“So currently, South and next is Maharashtra and Gujarat, together, we are working on them. So this year, we'll be opening a few branches in both these states.”

“As of 30th September 2026, the bank's total business reached INR2,39,712 crores, reflecting our sustained growth momentum in the second quarter with an overall business increase of 5% quarter-on-quarter and year-on-year growth of 18%.”

“Advances rose to INR1,11,589 crores representing a growth of 7% quarter-on-quarter, while deposits increased to INR1,28,123 crores, achieving quarter-on-quarter growth rate of 5%.”

“Net profit for the quarter was INR788 crores, an increase of 4% quarter-on-quarter and 37% year-on-year.”