Private sector lender Karur Vysya Bank (KVB) has announced impressive financial results for the third quarter of the fiscal year 2025-26, showcasing robust growth across key parameters. The Chennai-based bank reported a substantial 39% increase in net profit, reaching Rs 690 crore for the quarter ended December 31, 2025. This marks a significant improvement from the Rs 496 crore recorded during the same period in the previous fiscal year.
Strong Financial Performance in Q3 FY26
The bank's net interest income, a crucial indicator of core profitability, witnessed a healthy rise of 14.6% to Rs 1,239 crore in Q3 FY26. This compares favorably to the Rs 1,081 crore reported in the corresponding quarter of the last fiscal year. Despite this growth, the net interest margin (NIM) remained steady at 3.9% during the October-December quarter of 2025-26, indicating stable operational efficiency.
Asset Quality Shows Notable Improvement
Karur Vysya Bank demonstrated enhanced asset quality with its gross non-performing assets (GNPA) ratio improving by 12 basis points. As of December 31, 2025, the GNPA stood at 0.71% of gross advances, amounting to Rs 687 crore. This represents a positive shift from the 0.83% GNPA ratio recorded on December 31, 2024, which corresponded to Rs 691 crore.
Management Commentary and Business Milestones
In an official statement, Ramesh Babu B, Managing Director & CEO of KVB, highlighted the significance of the quarterly performance. He noted that the standalone net profit for this quarter exceeded the bank's entire annual profit for the fiscal year 2021-22. Furthermore, he revealed that the bank's total business has crossed the impressive milestone of Rs 2,11,647 crore, reflecting substantial growth and market presence.
The consistent performance across profitability, income generation, and asset quality metrics underscores Karur Vysya Bank's resilient operational strategy and effective risk management practices in a competitive banking landscape.
