R ARIVANANTHAM
CHENNAI, JAN 23
Karur Vysya Bank (KVB) on Thursday reported an exceptional financial performance for Q3 FY26, posting a 39% year-on-year jump in net profit to ₹690 crore, underpinned by strong business growth, sustained margin discipline, and one of the healthiest asset quality profiles among mid-sized private sector banks.
We are delighted to share the highlights of our Q3 Financial Results for FY 2025–26!
A year of growth, resilience and strong performance. #KVB #KarurVysyaBank #SmartWayToBank #Bank #Banking #Finance #FY2026
[Finance, Explore Page, FY2026, Bank, Annual Results, Performance] pic.twitter.com/qBF1NfNQC4
— Karur Vysya Bank (@KarurVysyaBank_) January 24, 2026
For the nine months ended December 31, 2025, the bank’s net profit rose 25% to ₹1,785 crore, compared to ₹1,428 crore in the corresponding period last year, reflecting consistent execution across lending, deposit mobilisation and operational efficiency.
- Total Business Crosses ₹2.11 Lakh Crore as Deposits and Advances Post Double-Digit Growth
- Nine-Month Net Profit Rises 25% to ₹1,785 Crore, Reflecting Consistent Earnings Momentum
- Asset Quality Strengthens with GNPA at 0.71% and NNPA at 0.19%, Among Best in Industry
- Capital Adequacy at 16.05% Provides Strong Growth Headroom Under Basel III Norms
- Cost Efficiency Improves Sharply with Cost-to-Income Ratio Below 43% in Q3
- Expanding Branch and ATM Network Reinforces Bank’s Semi-Urban and Rural Focus
Balance Sheet Expands at a Healthy Pace
KVB’s balance sheet size grew 16.49% year-on-year to ₹1,35,567 crore, while total business crossed ₹2,11,647 crore, registering a growth of 16.29%.
- Total deposits rose 15.57% YoY to ₹1,14,595 crore
- Total advances increased 17.16% YoY to ₹97,052 crore
The bank’s growth trajectory remained broad-based, supported by a calibrated expansion strategy and improved customer acquisition.
Strong Earnings Momentum in 9M FY26
During the nine-month period:
- Net Interest Income (NII) rose 12.90% to ₹3,580 crore
- Pre-Provision Operating Profit (PPOP) increased 18.97% to ₹2,828 crore
- Fee and commission income improved 10% YoY to ₹770 crore
The Net Interest Margin (NIM) stood at 4.03%, while the cost-to-income ratio improved sharply to 43.98%, reflecting tighter cost controls and operating leverage.
Q3 FY26: Profitability and Efficiency on Display
For the third quarter:
- Net profit rose 39% YoY to ₹690 crore
- NII grew 14.62% to ₹1,239 crore
- PPOP increased 23.31% to ₹1,005 crore
The cost-to-income ratio declined to 42.49%, compared to 47.27% in Q3 FY25, marking a significant improvement in operational efficiency.
Asset Quality Among the Best in Class
KVB continued to demonstrate exemplary asset quality:
- Gross NPA improved to 0.71%
- Net NPA remained below 0.20% at 0.19%
- Provision Coverage Ratio (PCR) stood strong at 96.56%
This positions the bank among the most resilient lenders in terms of credit risk management.
Capital Adequacy and Network Expansion
The Capital Adequacy Ratio (CRAR) under Basel III norms stood at 16.05%, well above the regulatory requirement of 11.50%, providing ample room for future growth.
As of December 31, 2025, KVB operated:
-
- 898 branches
- 1 Digital Banking Unit
- 2,211 ATMs / Cash Recyclers
Over 55% of branches are located in semi-urban and rural areas, supported by 431 business correspondents, reinforcing the bank’s inclusive banking focus.
Management Commentary
Commenting on the performance, B. Ramesh Babu, Managing Director & CEO, said: “The bank has delivered a strong and consistent performance in Q3 and over the nine-month period, driven by healthy business growth, improved operating efficiency, and sustained asset quality discipline. Our robust capital position and low NPAs place us well to support growth while continuing to create long-term value for all stakeholders.”
With stable margins, improving cost metrics, and strong balance sheet fundamentals, Karur Vysya Bank enters the final quarter of FY26 on a firm footing, well-positioned to sustain profitable growth in a competitive banking environment.
