Karur Vysya Bank share price surged more than 10% in intraday deals on the BSE on Tuesday, 21 July, a day after the company posted a strong 45% year-on-year (YoY) jump in its net profit for the April-June quarter of the financial year 2026-27 (Q1FY27).
Karur Vysya Bank share price opened at ₹308 against its previous close of ₹301.35 and jumped 10.50% to an intraday high of ₹333, defying weak market sentiment.
Karur Vysya Bank reported its June quarter results during market hours on Monday, 20 July, after which the stock ended nearly 3% down.
Meanwhile, the bank announced it has revised its marginal cost of funds-based lending rates (MCLR) with effect from 22 July 2026.
The bank’s overnight MCLR has been increased to 8.85% from 8.75% earlier; the one-month MCLR is now 8.75% from 8.65% earlier; the three-month MCLR stands unchanged at 8.95%; the new six-month MCLR is 9.15% against 9.10% earlier; and the one-year MCLR is now 9.35% from 9.25% earlier.
Karur Vysya Bank Q1 results FY27
As per the bank’s exchange filing, its Q1FY27 net profit increased by 44.92% YOY to ₹756 crore.
Net interest margin (NIM), a key metric to measure profitability, increased by 48 bps YoY and 2 bps QoQ to 4.34%. PPoP (pre-provision operating profit), a key metric that measures a bank’s core profitability, increased by 36.15% YoY.
CASA (current account and savings account) grew by 15.25% YoY and 8.53% QoQ, while the CASA ratio stood at 27.55%.
Loan book grew at 17.13% YoY, while deposits increased by 14.94% YoY.
“The bank’s total business reached ₹2,27,267 crore, reflecting our sustained growth momentum in the first quarter, with an overall business increase of 6% QoQ and a year-on-year growth of 16%. Our advances crossed ₹1 lakh crore during the current quarter and stood at ₹1,04,680 crore, representing a growth of 6% QoQ, while deposits increased to ₹1,22,587 crore, achieving a QOQ growth rate of 6%. Building on its strong performance, the bank recorded its highest profit of ₹756 crore,” said Ramesh Babu B, Managing Director and CEO, Karur Vysya Bank.
Karur Vysya Bank share price trend
As per BSE data, the stock is up 20% year-to-date. Over the longer timeframe of three and five years, the banking stock has delivered multibagger returns of 201% and 680%, respectively.
Karur Vysya Bank share price hit a 52-week high of ₹343.55 on 25 February this year after hitting a 52-week low of ₹201.80 on 4 September last year.
Should investors buy, sell, or hold?
Experts appear largely positive about the stock for the long term. Several top brokerage firms have maintained their buy calls on the stock despite its recent gains.
Brokerage firm PL Capital has a buy call on the stock, with a target price of ₹345.
PL Capital highlighted that the bank had a steady quarter, with loan growth, NII, NIM, and fees all in line.
“While loan growth for FY27 is guided at 1-2% above industry, the bank would prefer RAM (retail, agriculture, and MSME) growth while being cautious on corporate. We see loan growth of 17% and 16% in FY27E and FY28E, respectively,” said PL Capital.
“NIM performance has been strong for the last four quarters due to calibration in asset mix; NIM for Q2FY27 is guided to be more than 4% with upside risk, while full-year NIM guidance of 3.7-3.8% would be revisited post Q2FY27. We raise NIM by 5 bps each for FY27E and FY28E, leading to a core PAT upgrade of an average 2.7%. We keep multiple at 1.7 times and maintain the target price of ₹345, and retain a ‘buy’,” said the brokerage firm.
ICICI Securities has also maintained its buy call on the stock, raising the target price to ₹400 from ₹360 earlier, valuing the stock at nearly 2 times FY28E ABV, in line with estimated RoA.
ICICI said it remains impressed with Karur Vysya Bank’s execution on growth, profitability and asset quality.
“We note management sounded more comfortable, versus the last quarter, about the near-term NIM trajectory. We highlight the possibility of an upward revision in FY27 NIM guidance. We raise FY27E and FY28E EPS by nearly 7% and 4%, respectively, and now estimate RoA of nearly 2% and 1.9%, respectively, over the same period. Karur Vysya Bank is one of the top ideas in the sector,” said ICICI Securities.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
