Archive · 2 Jun 2025
Karur Vysya Bank Targets Deposit Growth in FY26
Karur Vysya Bank (KVB) is planning to grow its deposits by about 13% by the end of 2026.
They are focusing on expanding their retail business and getting new deposits.
The bank expects to maintain its profits and is aiming for a return on assets between 1.55% and 1.65% in 2026.
They've been successful in reshaping their loans, with more focus on retail customers.
They are also working on controlling costs and have a new team to attract deposits from different types of customers, including people living outside of India and businesses.
While they expect interest rates to go down, they are working to keep their profits strong.
The bank's profits increased in the last quarter of the financial year.
KVB targets approximately 13% deposit growth in FY26.
The bank aims for advances growth at the industry rate plus 2%.
NIMs may face pressure from rate cuts; KVB targets around 3.75% through cost control.
KVB guided for RoA between 1.55% and 1.65% in FY26.
The bank's Q4FY25 net profit rose 12.6% year-on-year.
- Who
- Karur Vysya Bank (KVB).
- What
- Karur Vysya Bank is targeting 13% deposit growth in FY26, supported by retail expansion.
- When
- The bank is targeting 13% deposit growth in FY26.
- Where
- N/A
- Why
- To build on retail expansion, acquire new liabilities and maintain profitability.
Positive
Negative
Net Interest Margins (NIMs)
Positive
KVB aims to maintain NIMs around 3.75% through cost control and increased non-interest income, even with potential rate cuts.
Negative
NIMs might decrease to 3.55% if the Reserve Bank lowers interest rates.
- Targeted Deposit Growth (FY26)
- 13%
- Targeted Advances Growth
- Industry rate + 2%
- FY25 Net Profit
- ₹513.4 crore
- Net Interest Income (Q4FY25)
- ₹1,089.2 crore
- Gross NPAs
- 0.76%
- Net NPAs
- 0.20%
- RoA (FY25)
- 1.73%
- RoA (FY26)
- 1.55% - 1.65% (guided)