Revenue and Profit Growth
Over the seven-year period ending March 2025, Karur Vysya Bank's interest earned surged from ₹5,815.82 crore in 2019 to ₹9,678.04 crore in 2025, reflecting a compound growth trend driven primarily by advances and investments. Income from investments rose steadily, reaching ₹1,622.47 crore in 2025, while interest on advances and bills expanded significantly to over ₹8,000 crore, underscoring the bank's growing lending operations.
Other income also contributed positively, increasing to ₹1,829.55 crore by 2025, supporting total income growth to ₹11,507.59 crore, up from ₹6,778.59 crore in 2019. Despite rising interest expenses, which climbed to ₹5,418.12 crore in 2025, the bank's net interest income improved markedly, reaching ₹4,259.92 crore, up from ₹2,362.82 crore six years prior.
Operating profit before provisions and contingencies showed a strong upward trend, more than doubling from ₹1,710.79 crore in 2019 to ₹3,212.33 crore in 2025. Provisions and contingencies, however, fluctuated, peaking in earlier years but declining to ₹621.60 crore in 2025, which helped lift profit before tax to ₹2,590.73 crore. After accounting for taxes, the profit after tax (PAT) rose impressively to ₹1,941.64 crore in 2025, a near tenfold increase from ₹210.87 crore in 2019.
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Balance Sheet Expansion and Asset Quality
The bank's balance sheet has expanded substantially, with total assets growing from ₹68,369.05 crore in 2020 to ₹1,19,537.75 crore in 2025. Deposits increased robustly, crossing ₹1,02,000 crore by 2025, up from ₹59,075.08 crore in 2020, reflecting strong customer confidence and deposit mobilisation. Advances also grew significantly, reaching ₹84,004.54 crore in 2025, nearly doubling from ₹46,098.11 crore in 2020.
Capital adequacy ratios have remained comfortably above regulatory requirements, with the total capital adequacy ratio at 18.17% and Tier 1 ratio at 17.12% in 2025, indicating a solid capital base to support growth. The bank's provision coverage ratio improved markedly to 96.81%, reflecting prudent risk management.
Asset quality has seen a notable improvement, with gross non-performing assets (NPAs) declining sharply from ₹4,449.57 crore in 2019 to ₹641.80 crore in 2025. Correspondingly, net NPAs dropped to ₹166.21 crore, representing just 0.2% of net advances, a significant reduction from 4.98% in 2019. This improvement has positively impacted profitability and investor confidence.
Operational Efficiency and Margins
Operating profit margins excluding other income have improved steadily, reaching 63.85% in 2025 compared to 48.36% in 2019. The bank's net interest margin has remained stable around 4%, reflecting effective asset-liability management. Profit after tax margin also expanded to 20.06% in 2025, up from 3.63% in 2019, highlighting enhanced operational efficiency and cost control.
Employee costs and other operating expenses have increased in line with business growth, but the bank has maintained a balanced expenditure profile, supporting sustained profitability. The number of branches and ATMs has also expanded moderately, supporting wider market reach and customer service.
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Cash Flow and Shareholder Returns
Cash flow from operations has generally been positive, with net increases in cash and cash equivalents reaching ₹2,148 crore in 2025. The bank's closing cash balance rose to ₹7,806 crore, supporting liquidity and operational flexibility. Shareholder funds have grown consistently, reaching ₹11,929.54 crore in 2025, bolstered by reserves of ₹11,768.52 crore.
Earnings per share (EPS) have shown a strong upward trend, rising from ₹2.64 in 2019 to ₹20.1 in 2025, reflecting the bank's improved profitability and capital efficiency. Book value per share also increased steadily to ₹148.17, indicating enhanced shareholder value over the period.
Overall, Karur Vysya Bank's historical performance reveals a well-managed institution with solid growth in income, profitability, and asset quality, supported by prudent capital management and operational discipline. Investors may find these trends encouraging as the bank continues to strengthen its market position.
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