Chennai: Karur Vysya Bank (KVB) posted a strong financial performance for the third quarter ended December 31, 2025, with its net profit rising to ₹689.96 crore, maintaining a steady pace despite macroeconomic headwinds. This marks a 20% growth over Q3 FY25 profit of ₹573.96 crore.
Healthy Loan Growth and Lower Provisions Support Profitability
The bank’s total income grew 14.2% year-on-year (YoY) to ₹3,30,313 lakh (₹3,303.13 crore), led by strong interest earnings of ₹2,79,418 lakh and a boost in other income to ₹50,895 lakh.
Operating profit before provisions stood at ₹1,00,534 lakh, a 15% increase from ₹87,527 lakh a year ago. Lower provisioning expenses, ₹21,061 lakh compared to ₹27,437 lakh in Q2, further aided bottom-line growth. Earnings per share improved to ₹5.14 from ₹5.13 YoY.
Asset Quality Remains Strong
The bank reported a stable asset quality profile. Gross NPA stood at ₹68,694 lakh, with the gross NPA ratio declining to 1.34%, down from 1.74% in the previous year. Net NPA also reduced to 0.71%, supported by a high provision coverage ratio of 96.56%.
Business Highlights
Total Business: ₹13,55,671 crore
Segment Revenue Leaders: Retail banking remained the primary driver, contributing ₹1,88,849 lakh in revenue for the quarter.
Capital Adequacy: Improved to 16.58% under Basel III norms, from 15.91% a year ago.
Return on Assets (ROA): Rose to 2.05% from 1.87% YoY.
KVB continued to invest in its digital banking capabilities, with the segment contributing significantly to overall retail performance. Segmental profits from retail banking (including digital) reached ₹62,912 lakh in Q3.
Management Commentary & Outlook
In a statement, KVB’s MD & CEO Ramesh Babu said, “We continue to focus on maintaining high asset quality and optimizing costs. Our digital initiatives are contributing significantly to operational efficiency.”
The bank also disclosed that it made a one-time incremental provision of ₹164 lakh related to the implementation of India’s new Labour Codes.
With a robust balance sheet and improving margins, KVB is positioned to sustain its growth momentum into Q4 and beyond.
