Mumbai: Karur Vysya Bank has delivered a 20% quarter-on-quarter (QoQ) rise in consolidated net profit for Q3 FY26, driven by stronger operating leverage, delighting its investors. These results reflected stronger core banking performances as the bank’s Net Interest Margin (NIM) falls 22 bps due to a ₹139 crore write off made in the previous quarter.
The surge in quarterly profits has been driven by a higher net interest income, healthy fee income growth and disciplined management, who helped offset the challenges from the NIM decline.
The bank’s Current Account Savings Account (CASA) deposit growth increased by 16% year on year, reaching ₹1,14,595 crore, offering the bank a cheaper source of funds. For the South India-focused bank, jewellery and mortgage loans grew the most, at almost 70% and 49% YoY, even as other loan categories, including vehicle, credit and consumer loans, have declined both on a QoQ and YoY basis.
The strong Q3 performance and overwhelmingly positive analyst ratings have made Karur Vysya Bank one of the most well-positioned picks for long term capital appreciation. The bank has been able to attract deposits consistently and deploy them well through advances efficiently, indicating strong operational capabilities within the Indian banking sector.
Karur Vysya Bank’s shares were trading at ₹264.15 per share on January 23, the day the news broke out. The Tamil Nadu-headquartered bank’s shares have risen 35.81% in the last one year, with these results expected to boost its value even further, if all goes well.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in stocks includes financial risks, and past performance is not indicative of future results. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
