Strong loan growth lifts earnings; asset quality remains stable
Karur Vysya Bank reported its highest-ever quarterly net profit of ₹690 crore for the December quarter, a 39% increase from a year earlier, driven by higher loan growth and improved operating profit, while asset quality remained stable.
Total business rose 16.29% year-on-year to ₹2.11 lakh crore as of December 31, 2025. Advances grew 17.16% to ₹97,052 crore, outpacing deposit growth of 15.57% to ₹1,14,595 crore, while the bank’s CASA ratio stood at 27.23%.
Net interest income for the quarter increased 14.62% to ₹1,239 crore, while pre-provision operating profit rose 23.31% to ₹1,005 crore. Net interest margin eased to 3.99%, compared with 4.04% in the corresponding quarter last year, reflecting lower yields on advances.
Asset quality remained contained, with gross non-performing assets at 0.71% of advances and net non-performing assets at 0.19% as of December-end. The bank’s Basel III capital adequacy ratio stood at 16.05%, well above regulatory requirements.
