In Week of Mar 28, 2026, Karur Vysya Bank Ltd (Banks - Private) is outperforming Nifty 500 with +24.1% relative strength. Fundamentals: Very Strong.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 (December 31, 2025) earnings • Updated Feb 22, 2026
What: 16bps reduction in cost of funds and 6bps increase in yield on funds driving margin expansion
Impact: +₹50 Cr revenue
“Management stated: 'achieving an expansion in margins to 3.99%. This represents a 22 basis points increase from the prior quarter, primarily driven by a 16 basis points reduction in cost of funds and six basis points increase in yield on funds.'”
What: Strong recovery momentum exceeding full-year guidance by Q3
Impact: +₹75 Cr revenue
“Management stated: 'We had guided recoveries from written-off accounts would be around ₹600 crores for the full year, and we have achieved ₹601 crores till the end of December, including the interest recovery.'”
What: Collaboration between branch and open market channels driving retail loan growth
Impact: +₹150 Cr revenue
“Management stated: 'Retail advances rose by 6% quarter-on-quarter, largely attributable to the growth in jewel loans and mortgage loans. The collaboration between the branch channel and open market channel demonstrated ongoing progress, reflected in a 14% increase in mortgage loan volumes during the quarter.'”
Earnings deceleration risks from management commentary
Trigger: Intensifying deposit rate competition
Impact: -15 bps margin impact
Management view: We expect NIM for the full year to be in the range of 3.9% to 3.95%
Monitor: CASA growth rate
Trigger: Continued de-growth in vehicle financing segment
Impact: -10 bps margin impact
Management view: Management acknowledged de-growth but didn't provide specific concerns
Monitor: Vehicle loan slippages
Key quotes from recent conference calls
“I am pleased to announce that we successfully navigated the quarter, achieving an expansion in margins to 3.99%. This represents a 22 basis points increase from the prior quarter, primarily driven by a 16 basis points reduction in cost of funds and six basis points increase in yield on funds. — Ramesh Babu”
“We had guided recoveries from written-off accounts would be around ₹600 crores for the full year, and we have achieved ₹601 crores till the end of December, including the interest recovery. — Ramesh Babu”
“We reiterated our guidance for credit growth above industry growth for the full year, with NIM expected between 3.9% to 3.95%, ROA above 1.85%, and gross/net NPAs below 1.5% and 1% respectively. — Ramesh Babu”
“Our liquidity coverage ratio continues to be well above the regulatory requirement of 100%. We had opened 10 branches in the 9-month period ended, comprising of 7 light branches and 3 regular branches. We have a plan to open another 6 branches in the last quarter of the year. — Ramesh Babu”
Forward-looking targets from management for FY26
NIM Guidance
3.9%
Key Milestones
• NIM 3.9-3.95%
• ROA >1.85%
• GNPA <1.5%
• NNPA <1%
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +12% | +20% | Stable |
| PAT (Net Profit) | +39% | +42% | Accelerating |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Karur Vysya Bank Ltd's latest quarterly results (Dec 2025) show
Karur Vysya Bank Ltd's profit is growing with an accelerating trend.
Karur Vysya Bank Ltd's revenue growth trend is stable.
Karur Vysya Bank Ltd's asset quality trend is improving.
Karur Vysya Bank Ltd's long-term compounding rates
Karur Vysya Bank Ltd's earnings growth is accelerating with strong momentum on a sequential basis.
Karur Vysya Bank Ltd's trailing twelve month (TTM) performance
Karur Vysya Bank Ltd appears undervalued based on our fair value analysis.
Karur Vysya Bank Ltd's current PE ratio is 12.4x.
Karur Vysya Bank Ltd's current PE is 12.4x.
Karur Vysya Bank Ltd's price-to-book ratio is 2.2x.
Karur Vysya Bank Ltd is rated Very Strong with a fundamental score of 88/100. This score is calculated from objective financial metrics
Karur Vysya Bank Ltd has a debt-to-equity ratio of N/A.
Karur Vysya Bank Ltd's return ratios over recent years
Karur Vysya Bank Ltd's operating cash flow is positive (FY2025).
Karur Vysya Bank Ltd's current dividend yield is 0.73%.
Karur Vysya Bank Ltd's shareholding pattern (Dec 2025)
Karur Vysya Bank Ltd's promoter holding has decreased recently.
Karur Vysya Bank Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Karur Vysya Bank Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
Karur Vysya Bank Ltd has 3 key growth catalysts identified from recent earnings analysis
Karur Vysya Bank Ltd has 2 key risks worth monitoring
In Q3 FY26 (December 31, 2025), Karur Vysya Bank Ltd's management highlighted
Karur Vysya Bank Ltd's management has provided the following forward guidance for FY26
Based on quantitative research signals, here is why Karur Vysya Bank Ltd may be worth studying
Karur Vysya Bank Ltd investment thesis summary:
Karur Vysya Bank Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
