Karur Vysya Bank Ltd. (KARURVYSYA) AI Stock Analysis

• Market Cap: ₹291.26B
• Dividend Yield: 0.86%
• Average Volume (3M): 92.12K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.28
• Revenue Growth: 13.61%
• EPS Growth: 16.82%
• Country: IN
• Employees: 8,889
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 7.10
• Shares Outstanding: 966,364,870
• 10 Day Avg. Volume: 117,039
• 30 Day Avg. Volume: 92,120
• PEG Ratio: 0.36
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.31
• P/FCF Ratio: -1.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ₹331.00 ▲(25.59% Upside)

The score is driven primarily by strong profitability and a low-leverage balance sheet, partially offset by weak latest-year cash flow. Technicals are positive but stretched (overbought RSI), and valuation is supportive due to the low P/E with a modest dividend yield.

Positive Factors

Revenue growth & profit margin

Sustained double-digit revenue growth paired with a 35.51% net profit margin demonstrates durable earnings leverage from lending and fee activities. This supports reinvestment, provisioning buffers and the bank's ability to fund strategic growth over multiple quarters.

Low financial leverage and strong ROE

A very low debt-to-equity ratio and a 16.28% ROE indicate conservative leverage and efficient capital use. Structurally, this balance-sheet strength reduces refinancing risk, supports lending capacity and provides resilience to credit stress across a 2-6 month horizon and beyond.

Diversified income mix

A mix of net interest income plus fee-based revenues provides durable diversification versus pure lending reliance. Fee income can smooth NII volatility and strengthen cross-sell economics, improving medium-term cash generation and margin stability if fee channels scale.

Negative Factors

Weak cash generation

Negative operating and free cash flows despite reported profitability point to weak cash conversion. Over several quarters this can pressure liquidity, limit capital deployment or dividends, and force reliance on wholesale funding or balance-sheet adjustments if not corrected.

Volatile cash flow growth

Volatile cash-flow growth complicates liquidity management and forward planning for a bank. Structural unpredictability in cash generation can hinder provisioning, capital allocation and disciplined lending growth, raising execution risk across the medium term.

Fluctuating operating margins

Inconsistent EBIT margins point to operational or mix pressures that undermine predictable core profitability. Persistent margin variability can reduce the firm's ability to sustainably fund growth, absorb credit costs, and deliver efficiency improvements over multiple quarters.

Karur Vysya Bank Ltd. Business Overview & Revenue Model

Company Description

The Karur Vysya Bank Limited provides various banking and financial services for personal and corporate customers in India. It operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. The company offers savings and current accounts; recurring, tax saving, and fixed deposits; personal, home, vehicle, and educational loans, as well as business loans, including working capital finance, term loans, and trade finance; foreign exchange services; debit and credit cards; prepaid instruments, including gift, forex travel, and re-loadable cards, as well as cards for senior citizens; life, non-life, and health insurance products; demat, trading, and mutual fund services; digital products; locker facilities; social security schemes; and government sponsored schemes. It also provides loans for micro, small, and medium enterprises, as well as commercial loans; mortgages; payment collection and transaction banking services; FCNR, NRE, and NRO deposits; jewel loans and loans against deposits; remittance services; and Internet and mobile banking services, as well as a range of products for the agricultural sector. As of March 31, 2022, the company operated 822 branches; 1,639 automated teller machines; 584 bunch note recycler machines; and 178 self-service passbook kiosks. The Karur Vysya Bank Limited was founded in 1916 and is based in Karur, India.

How the Company Makes Money

Karur Vysya Bank primarily generates revenue through interest income from loans and advances provided to customers. The bank earns interest on various types of loans, including personal loans, home loans, and business loans. Additionally, it generates fee-based income from services such as account maintenance, transaction fees, and commissions on financial products like insurance and mutual funds. The bank also benefits from income earned through its treasury operations, which include investments in government securities and other financial instruments. Furthermore, strategic partnerships with various financial institutions and fintech companies enhance its product offerings and customer reach, contributing to its overall earnings.

Karur Vysya Bank Ltd. Financial Statement Overview

Summary

Strong income statement (revenue up 10.75% and healthy 35.51% net profit margin) and solid balance sheet (low 0.10 debt-to-equity and 16.28% ROE) support the score, but the cash flow profile is a meaningful drag due to negative operating and free cash flow in the latest year.

Income Statement

Karur Vysya Bank Ltd. shows strong revenue growth with a 10.75% increase in the latest year, indicating robust business expansion. The net profit margin is healthy at 35.51%, reflecting efficient cost management and profitability. However, the EBIT margin has fluctuated, suggesting some operational challenges. Overall, the income statement reflects a solid financial performance with room for operational improvements.

Balance Sheet

The bank maintains a low debt-to-equity ratio of 0.10, indicating prudent financial leverage and a strong equity base. Return on equity is impressive at 16.28%, showcasing effective use of shareholders' funds. The equity ratio is stable, reflecting a solid financial position. However, the slight increase in total debt over the years suggests a need for careful monitoring of leverage.

Cash Flow

The cash flow statement reveals challenges with negative operating and free cash flows in the latest year, indicating potential liquidity issues. Despite this, the free cash flow to net income ratio is over 1, suggesting that the bank is generating sufficient cash relative to its net income. Historical cash flow growth rates have been volatile, highlighting the need for improved cash management strategies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	112.95B	109.52B	93.66B	73.64B	63.57B	63.70B
Gross Profit	56.48B	55.34B	49.71B	41.96B	34.84B	32.59B
EBITDA	26.65B	27.04B	22.00B	15.42B	10.50B	6.59B
Net Income	20.04B	19.42B	16.05B	11.06B	6.73B	3.59B
Balance Sheet
Total Assets	0.00	1.19T	1.05T	901.79B	800.44B	746.23B
Cash, Cash Equivalents and Short-Term Investments	0.00	78.07B	56.59B	46.95B	49.26B	63.20B
Total Debt	0.00	12.17B	24.78B	14.32B	13.39B	25.28B
Total Liabilities	-119.30B	1.07T	954.13B	815.95B	724.48B	676.63B
Stockholders Equity	119.30B	119.30B	100.40B	85.84B	75.96B	69.60B
Cash Flow
Free Cash Flow	0.00	-86.50B	15.91B	11.55B	2.37B	32.89B
Operating Cash Flow	0.00	-84.78B	16.89B	12.17B	2.95B	33.66B
Investing Cash Flow	0.00	-21.51B	-12.96B	-12.70B	-15.94B	-13.79B
Financing Cash Flow	0.00	127.77B	117.81B	-1.78B	-958.98M	-588.91M

Karur Vysya Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 263.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KARURVYSYA, the sentiment is Positive. The current price of 263.55 is below the 20-day moving average (MA) of 272.72, above the 50-day MA of 259.65, and above the 200-day MA of 223.94, indicating a bullish trend. The MACD of 9.27 indicates Negative momentum. The RSI at 74.23 is Negative, neither overbought nor oversold. The STOCH value of 92.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:KARURVYSYA.

Karur Vysya Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KARURVYSYA	76 Outperform	₹291.26B	12.67	―	0.86%	13.61%	16.82%
J&KBANK	75 Outperform	₹115.35B	5.38	―	1.03%	9.52%	1.91%
KTKBANK	70 Outperform	₹68.82B	5.99	―	2.42%	―	―
CUB	69 Neutral	₹224.48B	18.55	―	0.69%	14.95%	14.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PSB	65 Neutral	₹197.90B	16.14	―	0.26%	18.54%	67.80%
BANDHANBNK	52 Neutral	₹249.06B	24.72	―	1.00%	6.70%	-55.95%

Karur Vysya Bank Ltd. Corporate Events

Karur Vysya Bank Closes Insider Trading Window Ahead of Q3 Results

Karur Vysya Bank has notified the stock exchanges that its board will meet on January 23, 2026 to consider and approve the unaudited financial results for the quarter ended December 31, 2025. In line with its internal code of conduct and SEBI’s Prohibition of Insider Trading Regulations, the bank has closed its trading window for insiders from January 1 to January 25, 2026, during which directors, promoters, designated persons, connected persons and their immediate relatives are barred from trading in the bank’s securities, with the window reopening on January 26, 2026, underscoring its adherence to regulatory norms on insider trading and disclosure.

Karur Vysya Bank Cuts Base Rate and BPLR Effective January 7, 2026

Karur Vysya Bank has announced a downward revision of its key lending benchmarks, reducing its Base Rate from 11.15% to 10.70% and its Benchmark Prime Lending Rate (BPLR) from 16.15% to 15.70%, effective January 7, 2026. The rate cuts are expected to lower borrowing costs for customers linked to these legacy benchmarks, potentially improving credit demand and competitiveness in its loan portfolio, while also reflecting the bank’s alignment with broader interest rate conditions in the Indian banking system.

Karur Vysya Bank Shareholders Approve Postal Ballot Resolutions via Remote E-Voting

Karur Vysya Bank Ltd. has announced that the business items outlined in its 17 November 2025 postal ballot notice were approved by shareholders through a remote e-voting process, with the resolutions passed by the requisite majority as of 20 December 2025. The bank has released the detailed voting results and the scrutiniser’s report, and has made these results available on its website and the e-voting platform of NSDL, underscoring its compliance with SEBI’s disclosure norms and reinforcing governance transparency for its nearly 270,000 shareholders on the cut-off date.

Karur Vysya Bank’s Credit Ratings Reaffirmed by CARE Ratings

Karur Vysya Bank Ltd. has announced that CARE Ratings Limited has reaffirmed its credit ratings for the bank’s Short Term Fixed Deposit Programme and Fixed Deposit Programme. The ratings, CARE A1+ for short-term deposits and CARE AA; Stable for fixed deposits, indicate a strong financial position and stability, which could positively impact the bank’s market perception and stakeholder confidence.

Karur Vysya Bank Allots Equity Shares to Employees and CEO

Karur Vysya Bank Ltd. announced the allotment of equity shares during its board meeting on December 12, 2025. The bank allotted 63,420 equity shares to employees under the KVB ESOS 2011 Scheme and 16,658 equity shares to its MD & CEO, Shri B Ramesh Babu, as part of his compensation package under the KVB ESOS 2018 Scheme. This move reflects the bank’s commitment to rewarding its employees and leadership, potentially enhancing employee motivation and aligning management interests with shareholder value.

Karur Vysya Bank Revises External Benchmark Rate

Karur Vysya Bank Ltd. announced a revision in its External Benchmark Rate – Repo linked (EBR-R), reducing it from 8.80% to 8.55% effective December 6, 2025. This adjustment reflects the bank’s response to regulatory requirements and market conditions, potentially impacting loan interest rates for customers and influencing the bank’s competitive positioning in the financial sector.

Karur Vysya Bank Announces Retirement of Senior Management Personnel

Karur Vysya Bank Ltd. announced the retirement of Shri Mahendran K, General Manager and Country Head-PMD, following the completion of his term. This change in senior management is part of the bank’s compliance with SEBI regulations and may impact the bank’s operational dynamics as it adjusts to this leadership transition.

Karur Vysya Bank Expands Branch Network in Tamil Nadu and Andhra Pradesh

Karur Vysya Bank has expanded its branch network by opening new branches in Tirunelveli, Tamil Nadu, and Kakinada, Andhra Pradesh, bringing its total branch count to 898. This expansion aligns with the bank’s strategic commitment to enhance its presence in potential markets and promote financial inclusion. The new branches will offer comprehensive banking services, supporting the bank’s mission to foster sustainable growth and empower local businesses and communities. Additionally, KVB continues to enhance its digital banking solutions, ensuring customers have access to modern and secure banking services.

Karur Vysya Bank Engages with Investors at Avendus Spark Conference

Karur Vysya Bank Ltd. announced the participation of its top management team in the Avendus Spark Annual Investor Conference, emphasizing transparency by sharing only publicly available information. This engagement reflects the bank’s commitment to maintaining open communication with institutional investors and analysts, potentially enhancing its industry positioning and stakeholder trust.

Karur Vysya Bank Promotes Financial Literacy in Schools

Karur Vysya Bank has partnered with the National Finance Olympiad to launch a Financial Literacy Awareness Program targeting school students, particularly from government and underprivileged backgrounds. This initiative, part of the bank’s CSR efforts, aims to equip students with essential financial knowledge and skills, impacting over 3,150 students across 210 schools. The program includes a structured curriculum, study materials, and examinations to assess learning outcomes. The collaboration is seen as a step towards strengthening financial inclusion and nurturing financially responsible young citizens, with plans to expand these efforts further.