Karur Vysya Bank Reports Q1 FY27 Results: Net Profit Surges 44.9% YoY to ₹755.70 Crore

The Karur Vysya Bank Limited (CIN: L65110TN1916PLC001295) has officially released its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27). Headquartered in Karur, Tamil Nadu, the private sector lender recorded a 44.9% year-on-year (YoY) surge in net profit to ₹755.70 crore, driven by robust growth in core interest income, sustained improvement in asset quality, and lower provisioning costs.

Key Financial Highlights (Q1 FY27 vs Q1 FY26 & Q4 FY26)

Interest Earned: Stood at ₹3,049.42 crore for Q1 FY27, registering an 18.7% YoY increase compared to ₹2,568.55 crore in Q1 FY26 and a 5.0% sequential growth from ₹2,903.65 crore in Q4 FY26.

Interest Expended: Total interest expense reached ₹1,626.67 crore, up 9.2% YoY from ₹1,489.20 crore in Q1 FY26, reflecting managed cost of funds.

Other Income: Came in at ₹441.79 crore during the quarter, compared to ₹447.25 crore in Q1 FY26 and ₹615.80 crore in Q4 FY26.

Total Income: Advanced to ₹3,491.21 crore, up 15.8% YoY from ₹3,015.80 crore in Q1 FY26. Sequentially, total income moderated slightly from ₹3,519.45 crore reported in Q4 FY26.

Operating Profit: Stood at ₹1,095.60 crore, expanding 36.0% YoY from ₹805.50 crore in Q1 FY26. Sequentially, operating profit came lower than ₹1,246.76 crore in Q4 FY26.

Provisions & Contingencies (Other than Tax): Dropped significantly to ₹90.29 crore, representing a 23.6% YoY reduction compared to ₹118.14 crore in Q1 FY26 and a steep decline from ₹257.66 crore in Q4 FY26.

Profit Before Tax (PBT): Advanced 46.3% YoY to ₹1,005.31 crore compared to ₹687.36 crore in Q1 FY26.

Net Profit (PAT): Surged 44.9% YoY to ₹755.70 crore from ₹521.45 crore in Q1 FY26 and expanded 4.2% sequentially over ₹724.96 crore in Q4 FY26.

Earnings Per Share (EPS): Basic and diluted EPS (face value ₹2/- per share) rose to ₹7.82 (un-annualised) for the quarter, up from ₹5.40 in Q1 FY26 and ₹7.50 in Q4 FY26.

Income & Expenditure Breakdown

Key elements of total income and expenditure for Q1 FY27 include:

Interest/Discount on Advances & Bills: Contributed the primary share of interest income at ₹2,516.24 crore (vs ₹2,130.63 crore in Q1 FY26).

Income on Investments: Advanced to ₹510.65 crore (vs ₹417.51 crore in Q1 FY26).

Interest on RBI & Interbank Funds: Stood at ₹4.48 crore (vs ₹15.52 crore in Q1 FY26).

Other Interest Income: Recorded at ₹18.05 crore (vs ₹4.89 crore in Q1 FY26).

Operating Expenses: Totaled ₹768.94 crore (vs ₹721.10 crore in Q1 FY26), comprising ₹399.27 crore in employee costs and ₹369.67 crore in other operating expenses.

Total Expenditure (excluding provisions): Reached ₹2,395.61 crore (vs ₹2,210.30 crore in Q1 FY26).

Tax Expense: Stood at ₹249.61 crore (vs ₹165.91 crore in Q1 FY26).

Asset Quality & Financial Ratios

Karur Vysya Bank maintained strong capital strength and consistent asset quality metrics across quarters:

Gross NPA: Stood at ₹771.89 crore, compared to ₹592.60 crore in Q1 FY26 and ₹743.91 crore in Q4 FY26.

Gross NPA Ratio (%): Maintained at a healthy 0.74%, compared to 0.66% in Q1 FY26 and 0.75% in Q4 FY26.

Net NPA Ratio (%): Stood steady at 0.19% (flat compared to 0.19% in Q1 FY26 and Q4 FY26), with Net NPA in absolute terms at ₹195.76 crore.

Capital Adequacy Ratio (Basel III): Remained robust at 18.61% as of June 30, 2026, compared to 17.36% in Q1 FY26 and 18.76% in Q4 FY26.

Return on Assets (Annualised): Expanded to 2.11%, up from 1.73% in Q1 FY26 and 2.10% in Q4 FY26.

Net Worth: Expanded to ₹14,526.34 crore (calculated per RBI Directions), up from ₹12,158.68 crore in Q1 FY26 and ₹13,701.80 crore in Q4 FY26.

Paid-Up Equity Share Capital: Stood at ₹193.33 crore (face value ₹2/- per share).

Total Debts to Total Assets (%): Stood at 1.44%, compared to 1.47% in Q1 FY26 and 1.92% in Q4 FY26.

Shares of Karur Vysya Bank Limited was last trading in BSE at Rs. 309.65 as compared to the previous close of Rs. 304.05. The total number of shares traded during the day was 62839 in over 926 trades.

The stock hit an intraday high of Rs. 311.00 and intraday low of 301.80. The net turnover during the day was Rs. 19259336.00.

Source : Equity Bulls

Keywords

KarurVysyaBank INE036D01028 KVB Q1FY27 Q1FY2027 ResultUpdate