Karur Vysya Bank Reports Robust FY25 Performance with 21% Surge in Annual Net Profit

 

Mumbai: Karur Vysya Bank (KVB) has announced a strong financial performance for the fiscal year ended March 31, 2025, reporting a 20.99% year-on-year increase in net profit to ₹1,942 crore. The bank also recorded healthy growth across key balance sheet metrics, reinforcing its operational resilience and strategic expansion.


Key Financial Highlights (FY25):

  • Balance Sheet Size rose to ₹1,19,367 crore, up 13.19% from ₹1,05,453 crore in FY24.
  • Total Business grew 14.08% year-on-year to ₹1,86,569 crore.
  • Deposits crossed the ₹1 lakh crore mark for the first time, registering a 14.55% growth to ₹1,02,078 crore.
  • Advances increased 13.52% to ₹84,491 crore.


Profitability and Margins:

  • Net Interest Income (NII) increased 11.57% to ₹4,260 crore.
  • Pre-Provision Operating Profit (PPOP) rose 19.81% to ₹3,212 crore.
  • Net Interest Margin (NIM) stood at 4.09%, slightly down from 4.20% in FY24.
  • Commission and Fee Income rose 12.33% to ₹965 crore.


Despite a 42 bps rise in the cost of deposits to 5.61%, KVB improved its cost-to-income ratio to 47.25% (from 48.26% in FY24), highlighting operational efficiency.


Q4 FY25 Performance:

  • Quarterly Net Profit rose 12.50% to ₹513 crore.
  • NII for Q4 increased 9.11% to ₹1,089 crore.
  • PPOP surged 17.60% to ₹835 crore.
  • Fee Income for the quarter grew 10.20% to ₹270 crore.
  • NIM stood at 4.05%, while cost-to-income ratio improved to 47.77%.


Asset Quality & Capital Adequacy:

  • Gross NPA improved significantly to 0.76% (from 1.40%),
  • Net NPA fell to 0.20% (from 0.40%),
  • Provision Coverage Ratio (PCR) increased to 96.81%.
  • Capital Adequacy Ratio (CRAR) rose to 18.17%, well above the regulatory minimum of 11.5%.


Network Expansion: As of March 31, 2025, the bank’s network includes 888 branches, 1 Digital Banking Unit, and 2,252 ATMs / Cash Recyclers, supported by 352 business correspondents. Over 55% of branches are in semi-urban and rural locations, aligning with KVB’s inclusive growth strategy.

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