Karur Vysya Bank Q4 net profit up 13% to Rs 513 crore on strong growth

KVB reports its highest-ever annual profit of Rs 1,942 crore in FY25 and posts strong Q4 growth in deposits, advances, asset quality and RAM performance

Private-sector lender Karur Vysya Bank’s net profit for the January-March quarter (Q4) of 2024-2025 (FY25) grew 12.5 per cent year-on-year (Y-o-Y) to ₹513 crore, driven by strong performance across key metrics — growth, profitability, and asset quality. This was the Tamil Nadu-based bank's highest quarterly profit for Q4.

 

The bank’s pre-provision operating profit for the quarter increased 17.6 per cent to ₹835 crore, excluding a one-off item valued at ₹157 crore, against ₹710 crore in the year-ago period. 

 

The lender’s net interest income also rose 9.11 per cent to ₹1,089 crore from ₹998 crore in the corresponding quarter last year. The bank’s net interest margin declined to 4.05 per cent from 4.2 per cent. However, its overall performance was strong, supported by an improved yield on advances of 10.21 per cent, up by 11 basis points (bps). 

 

 

For FY25, the bank recorded the highest-ever net profit of ₹1,942 crore from ₹1,605 crore in FY24, a surge of 20.99 per cent. 

 

“The bank has recorded the highest quarterly profit of ₹513 crore for the fourth quarter, continuing its strong performance, guided by our three key metrics: growth, profitability, and asset quality. Both advances and liabilities grew 14 per cent each during the year,” said Managing Director and Chief Executive Officer Ramesh Babu B.

 

“We have continued to maintain a strong growth trajectory in Retail, Agriculture, and MSME verticals throughout the year, registering a 20 per cent growth. Our total business crossed ₹1.86 trillion with deposits crossing ₹1 trillion during the fourth quarter of the year,” he added.

 

The lender’s gross non-performing assets (NPAs) improved by 64 bps and stood at 0.76 per cent of gross advances as on March 2025 (₹642 crore) compared to 1.40 per cent Y-o-Y  (₹1,042 crore). Net NPAs were below 1 per cent and stood at 0.2 per cent of net advances, against 0.4 per cent Y-o-Y. Provision coverage ratio was 96.81 per cent in FY25 against 94.85 per cent in FY24.

 

Cost of deposits increased by 38 bps to 5.74 per cent in Q4 compared to 5.36 per cent for the corresponding quarter of the previous year. Yield on advances improved by 11 bps Y-o-Y to 10.21 per cent from 10.10 per cent. 

The bank’s Q4 operating expenses were ₹764 crore against ₹757 crore during the corresponding quarter of the previous year. Cost-to-income ratio stood at 47.77 per cent from 51.62 per cent Y-o-Y.

 

The lender's total business for FY25 was ₹1.86 trillion, registering a Y-o-Y growth of 14.08 per cent, from ₹1.63 trillion in FY24. Total deposits crossed ₹1 trillion to ₹1.02 trillion in FY25, a Y-o-Y growth of 14.55 per cent from ₹89,113 crore in FY24. 

Total advances also increased 14 per cent to ₹84,491 crore, from ₹74,423 crore as on March 2024.