1. Opening Hook
While everyone’s busy debating rate cuts and whether NIMs are about to collapse like New Year resolutions, Karur Vysya Bank quietly posted a 3.99% margin. Yes, in a quarter where most banks are blaming “competitive intensity” and “macro headwinds.”
From ₹35 crore net profit in December 2020 to nearly ₹700 crore now — that’s a 20x jump in five years. Not a fintech fairy tale. A 100-year-old Tamil Nadu bank.
And just when succession chatter started brewing, the CEO dropped a two-year extension bomb at 5 PM before the call. Timing? Impeccable.
Margins expanding. GNPA at 0.71%. ROA above 2%. Vehicle loans deliberately shrinking.
Read on — the interesting parts are buried in the Q&A.
2. At a Glance
- Total Business up 16% YoY – Slow and steady? More like quietly compounding.
- Advances up 17% YoY – Growth without discounting the soul.
- Deposits up 16% YoY – Repricing magic worked this quarter.
- NIM at 3.99% – Guidance was 3.7–3.75%. Overdelivered, no spreadsheet sorcery.
- ROA at 2.05% – Public sector nostalgia, private bank efficiency.
- GNPA at 0.71% – Almost boringly low.
- Net Profit ₹690 crore – 25% YoY jump.
- Credit Cost 0.47% (Q3) – No drama, just discipline.
3. Management’s Key Commentary
“Stability across growth, profitability and asset quality demonstrate robustness.”
(Translation: No fireworks, just systems working. And yes, we’re proud of it.) 😏
“We have mellowed down towards housing loans and vehicle loans due to low yields.”
(Translation: We’d rather grow slower than lend cheap and regret later.)
“Fixed rate loan book increased from 15% to 23%.”
(Translation: We saw the rate cut coming. Thank you, treasury foresight.)
“We compromised on some advance growth because deposits were tight.”
(Translation: Growth for growth’s sake? Not our style.)
“We exited weaker accounts consciously.”
(Translation: If pricing didn’t justify risk, we let competitors enjoy it.)
“Unsecured portfolio is only 1.91% of total advances.”
(Translation: We don’t need 10% unsecured to show 4% NIM.) 😌
“Five years ago, December profit was ₹35 crore. Now it’s nearly ₹700 crore.”
(Translation: From turnaround story to compounding machine.)
The tone was calm, almost old-school banker energy. No buzzwords. No “AI-led transformation.” Just risk-reward discipline repeated like a mantra.
4. Numbers Decoded
Metric Q3 FY26 Q2 FY26 Commentary
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NIM 3.99% 3.77% Deposit repricing jackpot
ROA 2.05% 1.81%
