Q1 2027 Karur Vysya Bank Ltd Earnings Call Transcript
Key Points
- Karur Vysya Bank Ltd (BOM:590003) reported a strong start to the financial year with a total business reaching INR227,267 crore, reflecting a year-on-year growth of 16%.
- The bank's net interest margin (NIM) was maintained at 4.26%, which is higher than the previous quarter, indicating effective asset mix calibration and yield optimization.
- Retail advances increased by 6% quarter on quarter, driven by growth in jewel loans and mortgage loans, with retail jewel loans registering a 12% growth.
- The bank's CASA (Current Account Savings Account) grew by 9% over the same period, with a significant contribution from new-to-bank customers.
- Karur Vysya Bank Ltd (BOM:590003) maintained a healthy capital adequacy ratio (CRAR) of 18.61%, providing comfortable headroom for growth.
- Non-interest income for the period stood at INR442 crore, down from INR616 crore in the previous quarter, marking a 28% sequential decline.
- Operating profit for the quarter declined by 12% sequentially due to one-off items and higher operating expenses.
- The bank anticipates a reduction of 10 basis points in the yield on advances in the next quarter due to competition and customer retention efforts.
- The cost of deposits increased slightly by 4 basis points on a sequential basis, and further increases are expected in the next quarter.
- The bank's operating expenses for the quarter increased by INR41 crore sequentially, partly due to higher provision requirements for employee benefits.
Ladies and gentlemen, good day, and welcome to the Q1 FY27 earnings conference call of the Karur Vysya Bank. We have with us today the management team of KVB, represented by Mr. Ramesh Babu, MD and CEO; Mr. Sankar Balabhadrapatruni, Executive Director; Mr. Chandrasekaran, Chief Operating Officer; and Mr. Ramshankar, CFO. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Ramesh Babu, MD and CEO, to take us through the highlights of the quarter gone by, after which we will open the floor for questions. Over to you, sir.
Thank you. Thank you, Sagar. Good evening to all of you. On behalf of Karur Vysya Bank, I extend a warm welcome to everyone joining our bank's quarter one earnings call for the financial year '26, '27. Our financial results and accompanying presentation have been made available on our website, and we trust that you would have had an opportunity to review them thoroughly in
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