Rekha Jhunjhunwala-Backed Low PE Bank Jumps Nearly 10% After Reporting Q1 FY27 Results; Net Profit Rises 45% YoY to Rs 756 Crore, FII Stake Increases

On Tuesday, Indian equity benchmarks traded lower, with the benchmark Nifty 50 index declining 66.95 points, or 0.28 per cent, to 24,171.55. Defying the weak broader market sentiment, Karur Vysya Bank share price surged 10.51 per cent to Rs 332.65, rising Rs 31.65, after the private sector lender reported its highest-ever quarterly profit, supported by healthy growth in advances, deposits and improved profitability.

Karur Vysya Bank Q1 FY27 Financial Performance

Karur Vysya Bank reported a 44.92 per cent YoY increase in net profit to Rs 756 crore in Q1 FY27 from Rs 521 crore in the corresponding quarter last year.

Net Interest Income (NII) grew 31.76 per cent YoY to Rs 1,423 crore from Rs 1,080 crore, while Pre-Provision Operating Profit (PPOP) increased 36.15 per cent to Rs 1,096 crore from Rs 805 crore.

Commission and fee-based income rose 7.57 per cent YoY to Rs 270 crore, while the cost-to-income ratio improved to 41.24 per cent from 47.24 per cent in Q1 FY26. The bank's Net Interest Margin (NIM) improved to 4.34 per cent from 3.86 per cent in the corresponding quarter last year.
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Strong Business Growth

The bank's total business increased 15.94 per cent YoY to Rs 2,27,267 crore as of June 30, 2026.

Total deposits grew 14.94 per cent YoY to Rs 1,22,587 crore, while advances increased 17.13 per cent YoY to Rs 1,04,680 crore, crossing the Rs 1 lakh crore milestone for the first time. The RAM (Retail, Agriculture and MSME) loan book grew 18 per cent YoY, while the CASA ratio stood at 27.55 per cent.

Asset Quality and Capital Position

The bank maintained healthy asset quality during the quarter. Gross NPA (GNPA) stood at 0.74 per cent, while Net NPA (NNPA) remained at 0.19 per cent.

The Provision Coverage Ratio (PCR) stood at 96.21 per cent. Meanwhile, the Capital Adequacy Ratio (CRAR) under Basel III improved to 18.61 per cent, with the CET-1 ratio at 17.98 per cent, well above the regulatory requirement.

Management Commentary

Commenting on the results, B. Ramesh Babu, Managing Director & CEO, said: "We are pleased to report that our performance indicators align with our previously issued guidance. We successfully front-loaded growth in the first quarter of this financial year, consistent with our approach over recent years. Our sustained and inclusive results across all three key metrics growth, profitability, and asset quality demonstrate the ongoing strength of our performance since the beginning of the year.

The bank's total business reached Rs 2,27,267 crore, reflecting our sustained growth momentum in the first quarter, with an overall business increase of 6 per cent quarter-on-quarter and 16 per cent year-on-year. Our advances crossed Rs 1 trillion during the current quarter and stood at Rs 1,04,680 crore, while deposits increased to Rs 1,22,587 crore. Building on its strong performance, the bank recorded its highest-ever quarterly profit of Rs 756 crore.

This quarter's performance reflects the discipline embedded in our business model, risk management and customer engagement."

Network Expansion

As of June 30, 2026, Karur Vysya Bank operated 903 branches, one Digital Banking Unit, and 2,169 ATMs/Cash Recyclers across the country. Around 55 per cent of its branches are located in semi-urban and rural areas, supported by 338 business correspondents.

Shareholding Pattern

According to the March 2026 shareholding pattern, promoters held 2.07 per cent stake in the bank. Foreign Institutional Investors (FIIs) increased their holding to 19.25 per cent from 16.87 per cent in the December 2025 quarter, while Domestic Institutional Investors (DIIs) held 39.26 per cent. Public shareholding stood at 39.40 per cent. Ace Investor Rekha Jhunjhunwala held a 4.16 per cent stake in the bank, making her one of the prominent public shareholders.

About Karur Vysya Bank

Karur Vysya Bank Ltd is one of India's leading private sector banks, offering a wide range of banking and financial services across retail, agriculture, MSME and corporate segments. The bank has a strong presence across semi-urban and rural markets while continuing to strengthen its digital banking capabilities and customer franchise.

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Disclaimer: The article is for informational purposes only and should not be construed as investment advice.