Karur Vysya Bank Q1 FY'26: Net Interest Margin Maintained at 3.86%, Total Business Grows by 5% QoQ

Karur Vysya Bank has reported its Q1 FY'26 earnings with a net interest margin of 3.86%, despite a 75 basis points rate cut. The total business of the bank grew by 5% QoQ and 15% YoY, reaching Rs. 1,96,024 crores. Advances and deposits stood at Rs. 89,374 crores and Rs. 1,06,650 crores, respectively. The bank has strategically focused on RAM verticals, which now account for 86% of the total advances portfolio. Retail advances, particularly jewel loans and mortgage loans, drove the growth. The bank also reported a 5% growth in the commercial business segment. The agriculture loan portfolio recorded a 4% growth, with agri jewel loans constituting 91% of the portfolio. The corporate and institutional loan portfolio experienced a 6% increase, primarily driven by real estate, food processing, and NBFCs. The bank's liability business constitutes 54% of the total business. Deposit growth remains a strategic focus, with total deposits increasing by 4% and CASA balances growing by 5%. The bank expects the cost of deposits to remain stable at current levels over the next quarter. The operating profit for the quarter was at Rs. 805 crores, reflecting an 8% increase compared to the same quarter in the previous year.