# Karur Vysya Bank Q2 Profit Rises 37% to Rs 788 Crore, Lifts NIM Outlook

- URL: https://stocks.freetheai.org/news/karur-vysya-bank-q2-profit-rises-37-to-rs-788-crore-lifts-nim-outlook-d028e1
- Published: 2026-10-16T17:01:24Z
- Category: earnings; sentiment: bullish; impact: high
- Symbols: [NSE:KARURVYSYA](https://stocks.freetheai.org/symbols/NSE-KARURVYSYA)
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Karur Vysya Bank Ltd. (NSE:KARURVYSYA) reported a 37.3% increase in net profit to Rs 787.7 crore for the second quarter of FY27, driven by strong growth in lending and net interest income. Total income reached Rs 1,932.2 crore, while net interest income rose 18.7% year-on-year to Rs 1,497.4 crore. Operating profit increased 14.3% to Rs 1,162.2 crore as operational efficiency improved, lowering the cost-to-income ratio to 39.9%.

The bank's balance sheet expanded across all major lending categories, with total advances rising 20.4% year-on-year to Rs 1.11 lakh crore and total deposits expanding 16% to Rs 1.28 lakh crore. Corporate loans grew 24.3%, while retail loans rose 20.8%. Asset quality improved significantly as fresh slippages fell to Rs 123 crore from Rs 350 crore a year earlier, helping keep gross non-performing assets down to 0.69%. Following these strong quarterly earnings, management raised its full-year net interest margin target to above 4%, up from its previous 3.75% estimate.

Investors will monitor whether the lender can sustain its credit growth target of 18% to 20% while navigating risks such as potential stress in micro, small, and medium enterprises, high funding costs, and the implementation of expected credit loss accounting rules.

## Key points

- Karur Vysya Bank reported Q2 FY27 net profit of Rs 787.7 crore, up 37.3% year-on-year.
- Net interest income rose 18.7% to Rs 1,497.4 crore, while operating profit grew 14.3% to Rs 1,162.2 crore.
- Total deposits increased 16% to Rs 1.28 lakh crore and total advances grew 20.4% to Rs 1.11 lakh crore.
- Management raised its full-year FY27 net interest margin guidance to above 4% from 3.75% previously.

## Questions and answers

### What were Karur Vysya Bank's Q2 FY27 earnings results?

Karur Vysya Bank reported a net profit of Rs 787.7 crore for Q2 FY27, representing a 37.3% increase compared to the same period last year. Net interest income grew 18.7% to Rs 1,497.4 crore.

### Why did Karur Vysya Bank raise its NIM guidance for FY27?

The bank raised its FY27 net interest margin guidance above 4% from 3.75% following steady margin performance, stronger revenue traction, and controlled operating costs.

### What is Karur Vysya Bank's loan and deposit growth rate?

In Q2 FY27, total advances rose 20.4% year-on-year to Rs 1.11 lakh crore, while total deposits grew 16% year-on-year to Rs 1.28 lakh crore.