Karur Vysya Bank Q2 FY27 Net Profit Rises to Rs 787.69 Crore

Total Income reached Rs 3,670.21 crore for the quarter, while Gross NPA ratio improved to 0.69%.

Reader Takeaway: Strong double-digit profit growth and stable asset quality metrics drive positive momentum for Karur Vysya Bank shareholders.

What just happened

Karur Vysya Bank announced its financial results for the quarter ended September 30, 2026. The bank recorded a significant jump in net profit, climbing to Rs 787.69 crore compared to Rs 573.96 crore in the same period last year. Total income for the quarter stood at Rs 3,670.21 crore, up from Rs 3,320.29 crore in Q2 FY26. For the first half of the financial year, the bank generated a net profit of Rs 1,543.39 crore.

Why this matters

The jump in profitability highlights the bank's operational efficiency and growth in core business segments. Retail banking continues to be the primary revenue driver, contributing Rs 2,334.33 crore to the quarterly income. Meanwhile, the operating profit before provisions and contingencies rose to Rs 1,162.20 crore, underscoring strong core banking performance.

Asset Quality

Asset quality continues to demonstrate resilience. As of September 30, 2026, the bank's Gross NPA ratio stood at 0.69% (Rs 765.44 crore), an improvement from 0.76% in the same period last year. Net NPA remains low at 0.18% (Rs 198.63 crore), indicating effective loan book management.

Governance and Notes

The financial results were subjected to a limited review by statutory auditors M/s. Kalyaniwalla & Mistry LLP and M/s. Varma & Varma. The bank also strengthened its capital base by creating a floating provision of Rs 25 crore during the quarter, which is classified as Tier II capital. Karur Vysya Bank continues to operate without any subsidiaries or joint ventures.

What to track next

Investors should closely monitor the bank's net interest margins in the coming quarters and its ability to sustain credit growth while maintaining these low NPA levels.