Karur Vysya Bank Ltd. share price target

Karur Vysya Bank (KVB) reported yet another strong quarter with Q1FY27 PAT of INR 7.6bn (up 45% YoY; 3% beat), driven by strong NII growth (>30% YoY) and multi-quarter-low slippages/credit costs.

Healthy quarter owing to better revenue and opex While NIM has been better outlook is cautious Lower opex/provisions are levers to core PAT KVB saw a strong quarter with higher core PAT due to beat on NII/NIM & TWO recovery and lower opex. Reported NIM was up 26bps QoQ to 4.25% led by (1) 16bps increase in loan yields (as fixed rate book was up from 23% to 29%) and (2) downward repricing of deposits. Superior core income allowed creation of buffer provisions of INR 1.6bn as KVB is cautious on the impact of the conflict; new ECL guidelines would not have a...

Asset quality (AQ) remains better than peers in Q4FY26; stressed assets stay low at 0.45% of the total assets

Despite INR 1.6bn of prudential provisioning, Karur Vysya Bank (KVB) reported strong Q4FY26 PAT of INR 7.25bn, up 41% YoY (~8% beat), led by robust NII growth (25% YoY), although FY27 NIM/RoA outlook appears guarded.

Asset quality remains better than peers; stressed assets stay low at 0.52% of total assets

AQ metrics remain pristine with low stress pipeline and nominal exposure at impact (EAI), due to high U.S. tariffs imposition

We hosted Karur Vysya Bank (KVB)’s senior management in Chennai. Investors discussions were centred around the SME portfolio’s health, especially export-oriented units amidst higher US tariffs and change, if any, in the operating environment for the SME units.

For Karur Vysya Bank (KVB), recovery from technical written-off (RTWO) contributed ~57bps to RoA (pre-tax) of ~2.3% for FY25. We note that disclosures and accounting for RTWO vary across banks; yet, KVB appears to exhibit the highest contribution from RTWO.

Lower margins were counterbalanced by lower opex and provisions, which kept Karur Vysya Bank’s profitability robust, with 1.73% RoA (stable q/q). Headline asset quality improved, with GNPA at 0.66% (down 10bps q/q) and NNPA at 0.19% (down 1bps q/q).

We recommend a BUY on the stock with a target price of Rs 299/share, implying an upside of 10% from the CMP.

Karur Vysya Bank (KVB) continued to report a robust performance, with PAT at Rs5.1bn and peer-best RoA at ~1.7%, which the bank guides to uphold, aided by healthy operating profitability and contained credit cost.

Strong operating performance, combined with moderate provisions kept Karur Vysya Bank’s profitability robust, with 1.73% RoA (down 1bp q/q). Headline asset quality remained stable, with GNPA at 0.76% (down 7bps q/q) and NNPA at 0.2% (stable q/q).

We recently met Karur Vysya Bank (KVB)’s top brass, including business heads, at Karur. Our confidence in the quality/longevity of growth and earnings is emboldened. KVB has been furnishing steady loan growth and will likely have at its disposal healthy optionality, as and when liquidity eases/lending to unsecured turns conducive.

Karur Vysya Bank (KVB) continues to report a robust performance, with PAT at Rs4.9bn and peer-best RoA at ~1.7%, which the bank guides to uphold, aided by healthy operating profitability and contained credit cost.

Karur Vysya Bank (KVB) reported its Q3FY25 results, broadly in line with our estimated pre-quarter numbers and beat on PPOP/PAT. The bank's core portfolio, RAM, continues to grow at a healthy pace (4.2% QoQ/20% YoY) while the corporate segment remains a laggard.

Decent operating performance combined with moderate provisions kept Karur Vysya Bank’s profitability strong, with 1.74% RoA (up 2bps q/q). Overall asset quality and PCR improved, with GNPA at 0.8% (down 27bps q/q) and NNPA at 0.2% (down 8bps q/q).

Stable NIM and strong traction in non-interest income led to KVB’s sturdy Q2 operating performance, which, combined with moderate provisions kept profitability strong.

Karur Vysya Bank (KVB) continues to deliver strong earnings growth with PAT at Rs4.7bn and peer-best RoA at ~1.7%, driven by strong and stable margins @4.1%.

We hosted Karur Vysya Bank (KVB) for overseas NDR. The investors seem to have acknowledged the remarkable transformational journey of KVB under the current management with steady growth and superior RoA.