Karur Vysya Bank Ltd. (KARURVYSYA) AI Stock Analysis

• Market Cap: ₹262.46B
• Dividend Yield: 0.86%
• Average Volume (3M): 92.12K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.34
• 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): 24.5
• Revenue Forecast (FY): ₹67.97B

• Rating: 76 Outperform
• Price Target: ₹368.00 ▲(39.63% Upside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

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

High Profitability

A sustained net profit margin of 35.51% indicates the bank converts a large share of revenue into earnings, providing a durable buffer to absorb credit losses and investment needs. Strong margins support internal capital generation and long-term profitability resilience.

Low Financial Leverage and Solid ROE

A D/E of 0.10 and 16.28% ROE reflect conservative leverage with efficient use of equity. This mix enhances regulatory resilience, gives flexibility to expand lending or absorb shocks, and supports sustainable shareholder returns without depending on high external borrowing.

Consistent Revenue and EPS Growth

Double-digit revenue growth alongside strong EPS expansion signals underlying franchise momentum across retail, SME and treasury streams. Consistent top-line and earnings growth underpin durable NII and fee prospects, enabling reinvestment and strategic expansion over time.

Negative Factors

Negative Operating and Free Cash Flow

Despite accounting profits, negative operating and free cash flows reduce liquidity flexibility and increase reliance on funding or asset sales to fund growth. Over months this can constrain loan origination, capex, or buffer capacity under stress, requiring active cash management fixes.

Volatile Cash Flow Growth

Volatile cash flow history complicates forecasting and capital planning, raising funding and provisioning uncertainty. For a bank, irregular cash conversion increases rollover and liquidity risk across cycles and limits management's ability to commit to consistent dividends or investments.

Fluctuating EBIT Margin

Variability in EBIT margins points to operational or pricing pressure and uneven cost control. Over a multi-month horizon, margin instability can erode earnings quality, make net income more sensitive to credit or expense shocks, and complicate long-term planning.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	117.59B	109.52B	93.66B	73.64B	63.57B	63.70B
Gross Profit	41.16B	55.34B	49.71B	41.96B	34.84B	32.59B
EBITDA	27.72B	27.04B	22.00B	15.42B	10.50B	6.59B
Net Income	21.05B	19.42B	16.05B	11.06B	6.73B	3.59B
Balance Sheet
Total Assets	1.30T	1.19T	1.05T	901.79B	800.44B	746.23B
Cash, Cash Equivalents and Short-Term Investments	62.06B	78.07B	56.59B	46.95B	49.26B	63.20B
Total Debt	25.17B	12.17B	24.78B	14.32B	13.39B	25.28B
Total Liabilities	1.17T	1.07T	954.13B	815.95B	724.48B	676.63B
Stockholders Equity	127.96B	119.30B	100.40B	85.84B	75.96B	69.60B
Cash Flow
Free Cash Flow	-83.23B	-86.50B	15.91B	11.55B	2.37B	32.89B
Operating Cash Flow	-82.38B	-84.78B	16.89B	12.17B	2.95B	33.66B
Investing Cash Flow	-15.69B	-21.51B	-12.96B	-12.70B	-15.94B	-13.79B
Financing Cash Flow	82.07B	127.77B	117.81B	-1.78B	-958.98M	-588.91M

Karur Vysya Bank Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KARURVYSYA, the sentiment is Negative. The current price of 263.55 is below the 20-day moving average (MA) of 307.95, below the 50-day MA of 298.53, and above the 200-day MA of 244.53, indicating a neutral trend. The MACD of -7.11 indicates Positive momentum. The RSI at 32.71 is Neutral, neither overbought nor oversold. The STOCH value of 18.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹262.46B	9.24	―	0.86%	13.61%	16.82%
KTKBANK	74 Outperform	₹87.59B	6.68	―	2.42%	―	―
J&KBANK	71 Outperform	₹130.66B	30.11	―	1.03%	9.52%	1.91%
CUB	69 Neutral	₹181.23B	16.23	―	0.69%	14.95%	14.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PSB	65 Neutral	₹161.42B	14.60	―	0.26%	18.54%	67.80%
BANDHANBNK	52 Neutral	₹255.18B	28.48	―	1.00%	6.70%	-55.95%

Karur Vysya Bank Ltd. Corporate Events

Karur Vysya Bank Details Participation in Global Investor Meet

Karur Vysya Bank informed the exchanges that its top management, including the managing director and chief executive officer, participated in the 17th Enterprising India Global Investors event organized by IIFL in Mumbai. The bank emphasized that only information already in the public domain was shared during discussions with institutional investors and analysts, and that no unpublished price-sensitive information was disclosed, framing the update as a voluntary move aligned with NSE guidance on best-practice disclosures.

Karur Vysya Bank Cuts MCLR Across Key Tenors Effective February 22

Karur Vysya Bank has announced a revision of its Marginal Cost of Funds Based Lending Rates, effective February 22, 2026, across key tenors from overnight to one year. The bank is reducing its MCLR by 10 basis points for overnight, one-month and three-month loans and by the same margin for six-month and one-year loans, signaling a modest easing in borrowing costs for customers.

This downward adjustment in lending rates may enhance the bank’s competitive positioning in the credit market by making its loan products slightly more attractive relative to peers. The move could support credit growth and benefit existing and new borrowers whose loans are benchmarked to MCLR, while marginally impacting the bank’s lending yields and interest income profile.

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.