Karur Vysya Bank shares jump 9.6% after Q1 profit hits record ₹756 crore

Karur Vysya Bank shares jumped 9.6 per cent in early trade to ₹329.90 on the NSE after the bank reported its highest quarterly profit of ₹756 crore for the quarter ended June 2026 (Q1FY27), up 45 per cent on a y-o-y basis. The stock’s gains came despite the bank maintaining a cautious and moderate growth outlook for FY26-27.

The management cautioned that the strong Q1 growth should not be considered an indicator of full-year growth at the same pace, as business growth was front-loaded in Q1 and potentially Q2.

Karur Vysya Bank maintained its credit growth guidance at 1 per cent to 2 per cent over industry growth for the rest of the quarters.

The bank’s full-year Net Interest Margin (NIM) guidance remains at 3.7 per cent to 3.8 per cent. NIM for the next quarter is expected to remain at 4 per cent plus, while the full-year guidance will be reviewed at the end of September.

On asset quality, the bank expects Gross NPA to remain below 1.5 per cent and Net NPA below 1 per cent. Slippage is expected to remain below 1 per cent of the loan book.

Kotak Securities assigned a sell call on KVB, with a target price of ₹285, compared with an earlier target of ₹275. The brokerage’s key takeaways said operational excellence remains intact, while strong operating momentum drives another strong quarter.

Kotak Securities also said growth and asset quality remain reassuring, but the margin outlook requires patience. The brokerage added that valuation discomfort overrides strong business performance.