Karur Vysya Bank stock skyrockets 13% after announcing strong Q3 results; Check details

Synopsis: Karur Vysya Bank shares surged 13% after Q3FY26 results showed PAT up 39% YoY to Rs. 690 cr, deposits rising 16% to Rs. 1.15 lakh cr, and net NPA at 0.19%.

This company is engaged in providing a wide range of banking and financial services, including commercial banking and treasury operations, and is now in the spotlight after its PAT has increased 20 times over the last five years. 

With a market capitalisation of Rs. 28,614 cr, the shares of Karur Vysya Bank Ltd are currently trading at Rs. 298 per share, increasing over 12.5% in today’s trading session, making a high of Rs. 298.60 per share, up from its previous close of Rs. 265.35 per share. As of Q3FY26, Rekha Jhunjhunwala holds a stake of 4.16% in the company.

Q3 Results

YoY performance

Net Interest Income increased by 15% from Rs. 1,081 cr in Q3FY25 to Rs. 1,239 cr in Q3FY26. Operating profit rose by 23% from Rs. 815 cr to Rs. 1,005 cr. Net profit significantly increased by 39% from Rs. 496 cr to Rs. 690 cr over the same period. 

Net interest margin reduced by 22 bps to 3.99%. GNPA reduced 12 bps to 0.71%. Net NPA reduced to 0.19% to 0.20%. Gross NPA also reduced to 0.71% from 0.83%. Deposits surged by 16% from Rs. 99,155 cr to Rs. 1,14,595 cr. Jewel’s loan portfolio grown by 26% YoY. 

QoQ performance

Operating profit rose by 14% to Rs. 1,005 cr. Net profit increased by 20% from Rs. 574 cr in Q2FY26 to Rs. 690 cr in Q3FY26. Deposits increased by 4% to Rs. 1,14,595 cr from Rs. 1,10,492 cr. GNPA reduced by 5 bps to 0.71%. Total retail portfolio increased by 6% to Rs. 25,424 cr.

Retail Portfolio 

The bank’s total retail loan portfolio grew 24% YoY to Rs. 25,424 crore in Dec-25. Key growth drivers were Retail-Jewel loans (+70%) and Mortgage/LAP loans (+49%), while vehicle, BNPL, personal, and education loans declined year-on-year. Housing and other retail loans saw modest growth of 3% and 7%, respectively.

Commercial Advances Growth

Karur Vysya Bank’s commercial advances grew 15% YoY and 3% QoQ, reaching Rs. 34,347 crore in December 2025, up from Rs. 29,824 crore in December 2024. The average ticket size of the commercial loan book at the account level increased from Rs. 55.3 lakh in March 2025 to Rs. 67.6 lakh in December 2025, reflecting higher-value lending. Notably, 67% of commercial loans are less than Rs. 5 crore, highlighting the bank’s focus on smaller-ticket MSME clients.

MSME Strategic Growth Levers

The bank is driving MSME advances growth through focused execution at high-potential branches and product-led initiatives, including new launches and revamping existing products. Efforts include focused training programs on bank products and account identification to enhance client engagement.

Management Commentary 

The CEO of the bank stated, “Our Q3 performance has been strong, with growth, profitability, and asset quality all performing well. PAT has grown 20x over five years, and net NPA is among the lowest at 0.19%. Margins may remain stable in Q4, and fixed-rate loans will rise to 26–27% to protect margins.

We are focused on overall yield, growing corporate business with favourable pricing, and maintaining gold loans below 30% of the book with minimal delinquencies. MSME growth is expected to be around 15–16%, and our credit card portfolio should stabilise by FY26. Capital adequacy stands at 18%, and we do not foresee needing additional capital for the next two years, even as deposits remain tight”.

Karur Vysya Bank Ltd (KVB) is a prominent private-sector bank in India. Known for its strong regional presence in South India, KVB offers a wide range of banking services, including retail, corporate, and agricultural banking, along with digital banking solutions. 

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