Karur Vysya Bank delivered exceptional September quarter results with Q2FY27 net profit of ₹787.69 crore, representing a robust 37.2% year-on-year growth from ₹573.96 crore in the corresponding quarter of the previous fiscal year. According to the latest financial results, total income grew 10.5% YoY to ₹3,670.21 crore compared to ₹3,320.29 crore a year earlier. The bank demonstrated broad-based business growth with total income rising 5.1% quarter-on-quarter from ₹3,491.21 crore in June 2026. Interest income from advances and bills amounted to ₹2,697.71 crore, while treasury investments contributed ₹511.44 crore. Interest expended on deposits and borrowings was ₹1,738.03 crore, with operating expenses at ₹769.98 crore.
The bank has significantly raised its FY27 NIM and RoA guidance to above 4% and above 2% respectively, both of which ICICI Securities considers conservative. As reported by the brokerage, the bank's FY27-28E EPS estimates have been raised by 6-7% each, with projected return on assets of approximately 2.1% and 2.0% and return on equity of 19-21%. The bank's strong fundamentals are supported by one of the lowest slippages and special mention accounts, positioning it among the few banks with minimal impact from expected credit loss provisions.
On the asset quality front, gross non-performing assets stood at ₹765.44 crore with a net NPA ratio of 0.18%, demonstrating strong asset quality management. The provision coverage ratio was 96.13%, while return on assets came in at 2.10% for the quarter. The bank's CRAR under Basel III was 17.97%, indicating robust capital adequacy. Retail banking generated ₹2,334.33 crore in revenue, with treasury services adding ₹566.56 crore. Provisions and tax charges for the quarter included ₹118.53 crore for provisions and ₹255.98 crore for tax, with profit before tax at ₹1,043.67 crore.
Karur Vysya Bank shares were trading at ₹347.05 on NSE, up 1.70% from the previous closing price as of October 15, 2026, following the strong quarterly results announcement. According to Trendlyne's technical data, the stock is trading above all eight simple moving averages, indicating a strong technical trend. ICICI Securities maintains its BUY rating with a revised target price of ₹450, up from the previous ₹400, based on 2.2x FY28E adjusted book value. The brokerage notes that valuations remain attractive at 1.7x FY28E ABV and below 10x EPS, supporting the positive outlook on the bank's prospects.
