Karur Vysya Bank Q2 FY27 NIM at 4.26%, Guides 18-20% Growth

Event Type: The document is a regulatory intimation and transcript of a post-results earnings conference call held to discuss the unaudited financial results for the quarter ended September 30, 2026 (Q2 FY26-27).

Date and Time: The conference call was held on October 15, 2026, at 6:00 P.M. Indian Standard Time (IST).

Purpose: The stated purpose was to discuss the bank's Q2 FY27 unaudited financial results and provide a business update.

Earnings Timing: The call was held after the earnings announcement, as it references results that were previously made available on the bank's website.

Availability of Materials: The financial results and an accompanying presentation were made available on the bank's website prior to the call. The full transcript of the conference call was filed with the exchanges and is also available on the bank's website at the provided link.

UPSI Statement: The document is a disclosure of the call transcript itself. The call included a detailed discussion of published financial results and outlook; no specific statement indicating that no Unpublished Price Sensitive Information (UPSI) would be shared was included in the provided transcript excerpts.

Business Performance:
Total business reached ₹2,39,712 crores, up 5% QoQ and 18% YoY.
Advances grew to ₹1,11,589 crores, a 7% QoQ increase.
Deposits increased to ₹1,28,123 crores, a 5% QoQ growth.
RAM (Retail, Agri, MSME) segment constituted 86% of the advances portfolio; Corporate segment was 14%.

Key Metrics:
Net Interest Margin (NIM) was 4.26% for the quarter (4.34% including a one-off recovery of 8 bps).
Yield on advances was 10.09%, up 8 bps QoQ.
Cost of Deposits increased by 4 bps sequentially.
Operating Profit stood at ₹1,162 crores, up 14% YoY and 6% QoQ.
Net Profit was ₹788 crores, up 4% QoQ and 37% YoY.
Gross NPA stood at 0.69% (down 5 bps QoQ); Net NPA at 0.18% (down 1 bp QoQ).
Slippage ratio was 0.44% annualized.
Credit Cost was 0.43% annualized.
ROA for the quarter was 2.1%.
CRAR (Basel III) was healthy at 17.97%.

Forward-Looking Guidance: Management provided the following explicit guidance for FY26-27:
Credit Growth: Between 18% to 20%.
NIM: To be above 4%.
ROA: To be about 2%.
Asset Quality: Gross NPA expected to be below 1.5%; Net NPA below 1%; Slippages below 1%.
Cost-to-Income Ratio: Expected to be below 45% in the coming quarters.

Strategic Themes: Discussed themes included a focus on calibrated, granular growth; operational efficiency; customer centricity; disciplined risk management; navigating competitive pricing pressures; and branch expansion (50 planned for FY27).

Attachments: The regulatory filing enclosed the full transcript of the conference call.

Financial Data Disclosure: This announcement itself did not contain financial data; it was an intimation of the availability of the call transcript. The transcript contained a detailed discussion of the already-published financial results.