Private sector lender Karur Vysya Bank reported robust business growth for the quarter ended June 30, 2026, with total business reaching ₹2.27 lakh crore, representing a 15.94% year-on-year increase from ₹1.96 lakh crore in the corresponding quarter last year. According to the bank's provisional business update, total business also grew 5.99% sequentially from ₹2.14 lakh crore at the end of March 2026. The bank's shares responded positively to the results, gaining 1.8% to touch an intraday high of ₹301.45 on Wednesday, July 1, 2026. As of 2:40 PM on Wednesday, the shares were trading at ₹298 on the National Stock Exchange, rising 0.64%. However, the stock shed 0.70% to settle at ₹291.90 on Friday, July 3, 2026, with the stock trading in the range of ₹201.80–₹343.55 over the past 52 weeks.
The bank's gross advances demonstrated strong momentum, growing 17.12% year-on-year to ₹1.05 lakh crore compared with ₹89,374 crore in the corresponding quarter last year, marking the first time the bank has crossed the ₹1 lakh crore milestone. As reported by CNBC TV18, advances also rose 6% quarter-on-quarter from ₹98,754 crore at the end of March 2026. This growth trajectory indicates the bank's continued focus on expanding its lending portfolio across various segments, with 86% of the portfolio in secured assets like gold and MSME collateral. The advances growth of 17.12% marks a continuation of the bank's strategy to front-load credit expansion in the first half of the fiscal year. The business volume has increased by ₹31,241 crore compared to the ₹1.96 lakh crore reported in June 2025.
The bank's CASA (Current Account Savings Account) deposits showed healthy growth, increasing 15.26% year-on-year to ₹33,777 crore from ₹29,306 crore. According to the provisional business update, CASA deposits also rose 8.53% sequentially from ₹31,122 crore as of March 31, 2026. This growth in low-cost deposits supports the bank's funding profile and cost of funds management strategy, suggesting effective retail mobilization despite a high-interest-rate environment that usually pressures low-cost deposits. The 15.26% rise in CASA deposits provides a competitive edge in cost-of-funds management, with the bank successfully attracting low-cost funds to support its lending activities.
ICRA has reaffirmed its 'ICRA AA (Stable)' issuer rating and reaffirmed its 'ICRA A1+' rating for the bank's Certificate of Deposit (CD) programme size of ₹12,000 crore, up from ₹10,000 crore earlier. The bank recently announced the re-appointment of Ramesh Babu B as MD & CEO for a two-year term starting July 2026, providing stability during this high-growth phase. Karur Vysya Bank also expanded its footprint with a new branch in Villivakkam, Chennai, and launched a premium Visa credit card portfolio in May 2026. For FY26, the bank declared a 130% final dividend, rewarding shareholders after a year of 29% profit growth. The bank's total deposits reached ₹1.23 lakh crore as of June 30, 2026, representing a 14.94% year-on-year increase, while maintaining a balanced growth profile with both advances and deposits growing in double digits. Despite recent correction, the stock has delivered a robust return of nearly 40% over the last nine months.
