Bank announces bonus shares, reports a 13.5% increase in Q1 earnings for FY2026, according to Karur Vysya Bank.
Karur Vysya Bank (KVB) has announced a robust financial performance for the first quarter of the 2025-2026 fiscal year, with a 14% year-on-year increase in net profit to ₹521 crore. This growth was driven by improved net interest income (NII), better asset quality, and controlled operating expenses.
The bank's total business, comprising deposits and advances, expanded by over 15%, with deposits rising 15.49% to ₹1,06,650 crore and advances increasing 15.01% to ₹89,374 crore. Asset quality also improved significantly, with gross non-performing assets (NPAs) reducing to 0.66% from 1.32% a year earlier, and net NPA ratio falling to 0.2%.
In a shareholder-friendly move, KVB's board has approved a 1:5 bonus share issue, meaning shareholders will receive one bonus share for every five shares held. This bonus issue also coincides with an increase in the authorized share capital to ₹250 crore. The bank views this as a sign of confidence in its future prospects.
The strong financial and operational performance, coupled with the bonus share issue, indicates that Karur Vysya Bank is well-positioned for future growth. The bank successfully front-loaded growth in the first quarter of the current financial year, bolstered by improving asset quality, expanding business, and shareholder-friendly actions.
Elsewhere in the banking sector, AkzoNobel is exiting the decorative paints business in India. Canara Bank's Q1 net profit for the same fiscal year has climbed by 22%, reaching ₹4,752 crore, while its net interest income (NII) has dipped in Q1. Indian Bank's profit for Q1 has increased by 24%, amounting to ₹2,973 crore, and its asset quality has also improved.
On the stock market, the shares of Karur Vysya Bank closed at ₹270.75 on the BSE, remaining unchanged from the previous day. The record date for the bonus issue is August 26, 2025, and the bank's Annual General Meeting (AGM) is scheduled for August 21, 2025, where the bonus issue is expected to be finalized.
Ramesh Babu B, Managing Director & CEO of The Karur Vysya Bank, reported that performance indicators align with previously issued guidance. He expressed optimism about the bank's future prospects, citing the improved asset quality, expanding business, and shareholder-friendly actions as key drivers for growth.
In conclusion, Karur Vysya Bank's strong financial performance and the bonus share issue are positive indicators for the bank's future growth. The bank's focus on improving asset quality, expanding business, and shareholder-friendly actions sets it apart in the competitive Indian banking sector.
- The banking sector recognized Karur Vysya Bank's (KVB) exceptional financial growth in the first quarter of the 2025-2026 fiscal year, where net profit increased by 14% to ₹521 crore.
- As part of its business strategy, KVB has approved a 1:5 bonus share issue, which will provide shareholders with one bonus share for every five shares held, and has also raised its authorized share capital to ₹250 crore.
- The bank's Managing Director & CEO, Ramesh Babu B, emphasized the importance of improving asset quality, expanding business, and shareholder-friendly actions in driving the bank's future growth.
- By focusing on personal-finance matters such as managing expenses, improving asset quality, and engaging in investing opportunities, customers can take advantage of the strong position Karur Vysya Bank is in for future growth.
