Karur Vysya Bank Q2 update: Deposits at ₹1.10 lakh crore, advances up 15.5%

Karur Vysya Bank (KVB) showcased steady business momentum in its September quarter update, highlighting the lender’s ability to sustain double-digit growth in a competitive banking environment.

The bank’s total business expanded 15.4% year-on-year, reaching ₹2.03 lakh crore as of September 30, 2025, compared with ₹1.76 lakh crore a year earlier. This performance was also reinforced by a sequential rise of 3.7% over the June quarter.

Deposits climbed 15.3% year-on-year to ₹1.10 lakh crore, building

further on the ₹1 lakh crore level achieved in the June quarter. On the lending side, advances rose 15.5% to ₹92,719 crore, supported by steady credit demand across segments.

The bank’s focus on strengthening its low-cost funding base was also evident, with current account and savings account (CASA) balances increasing 8.2% year-on-year to ₹30,555 crore.

On the markets front, shares of Karur Vysya Bank were seen trading largely steady on Wednesday. At 1:49 PM, the stock was flat at ₹210.06 on the NSE, recovering from the day’s low of ₹208.25.

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The strong update builds on the bank’s first-quarter performance. In July, KVB reported a 13.5% year-on-year rise in net profit to ₹521 crore for Q1FY26, compared to ₹459 crore a year ago. Net interest income rose 5.1% to ₹1,080 crore. Total assets grew 15.3% year-on-year to ₹1.25 lakh crore.

Asset quality also improved sharply. Gross non-performing assets (GNPA) declined to 0.66% of gross advances (₹593 crore), down from 1.32% (₹1,025 crore) last year. Net NPA nearly halved to 0.19% (₹170 crore) from 0.38% (₹294 crore). Provision coverage ratio improved to 96.8%.

The board has approved a bonus issue in the ratio of 1:5, subject to shareholder approval, signalling confidence in its capital position. With deposits rising further to ₹1.10 lakh crore and advances maintaining double-digit growth, the bank is positioning itself for sustained balance sheet expansion in FY26.