Karur Vysya Bank (KVB) is a distinguished private sector bank founded in 1916 by M.A. Venkatarama Chettiar and Athi Krishna Chettiar in Karur, Tamil Nadu. KVB is one of India's leading private sector banks headquartered in Karur, Tamil Nadu, with a rich heritage of over a century, consistently striving to provide innovative banking solutions to its customers. The bank was established to provide financial support to traders and agriculturists in and around Karur, a textile town in Tamil Nadu, starting with an initial capital of Rs. 1 lakh on July 1, 1916.
Karur Vysya Bank is engaged in providing a wide range of banking and financial services including commercial banking and treasury operations. The bank operates through four primary business segments:
- Retail Banking: Comprises 64% of the business, which includes lending of funds and other banking services.
- Corporate/Wholesale Banking: Accounts for approximately 18% and includes all advances to trusts, partnership firms, companies, and statutory bodies not included under Retail Banking.
- Treasury operations: Represent 17% of the business and comprise investments in Central and State Government securities, debt instruments of Banks, FIs, equity shares, mutual funds, security receipts, and forward contracts, derivatives, and foreign exchange operations.
- Other Banking Operations: Account for approximately 1% and include para-banking activities like bancassurance, third-party product distribution, demat services, and deposits in RIDF, MSME Funds.
As of March 31, 2025, the Bank's distribution network stands at 888 branches and 1 Digital Banking Unit and 2,252 ATMs / Cash Recyclers. KVB operates with a vast network of 840 branches and 2,270+ ATMs and cash recyclers, establishing a strong presence across the country. The bank operates over 800 branches and has a presence in more than 20 states across India.
For the financial year ended March 31, 2025, KVB reported its highest ever net profit of ₹1,942 Crore, representing a robust growth of 20.99% from ₹1,605 Crore in the previous year. For Q4 FY2025, net profit registered a growth of 12.50% and stood at ₹513 Crore compared to ₹456 Crore in the corresponding quarter of the previous year.
The bank's business growth has been impressive across all segments. Total business crossed ₹1,86,569 Crore with deposits crossing ₹1 trillion during the 4th quarter of FY2025, registering a year-on-year growth of 14.08%. Total deposits as of March 31, 2025, crossed one lakh crore and stands at ₹1,02,078 Crore, registering a year-on-year growth of 14.55%. Total advances as of March 31, 2025, stands at ₹84,491 Crore, registering a year-on-year growth of 13.52%.
The bank's financial health indicators demonstrate strong performance.
- Capital Adequacy Ratio (CRAR) as per Basel III guidelines was at 18.17% as of March 31, 2025, compared to 16.67% as of March 31, 2024, well above the regulatory requirement of 11.50%. Tier 1 capital ratio was at 17.12% as of March 31, 2025, compared to 15.46% as of March 31, 2024.
- Asset quality has shown significant improvement. Gross non-performing assets (GNPA) has improved by 64 basis points and stands at 0.76% of gross advances as of March 31, 2025 (₹642 Crore) compared to 1.40% as of March 31, 2024 (₹1,042 Crore). Net non-performing assets (NNPA) stands at 0.20% of net advances as of March 31, 2025 (₹166 Crore), against 0.40% as of March 31, 2024 (₹298 Crore). Provision Coverage Ratio (PCR) was at 96.81% as of March 31, 2025, compared to 94.85% as of March 31, 2024.
The cost to income ratio stands at 47.25% for FY25 compared to 48.26% for FY24, indicating improved operational efficiency. Net interest income increased by 11.57% to ₹4,260 Crore compared to ₹3,818 Crore in the previous year. Pre-provision operating profit (PPOP) increased by 19.81% for FY2025 at ₹3,212 Crore, compared to ₹2,681 Crore in the previous year.
The bank has continued to maintain strong trajectory of growth in RAM (Retail, Agriculture, and MSME) verticals throughout the year, registering 20% growth. Loans book under RAM grew at 19.79% year-on-year and 3.48% for the quarter. This strategic focus on retail, agriculture, and MSME segments aligns with the bank's vision to serve diverse customer segments effectively.
The bank has adopted technology with best-in-class Internet Banking and Mobile Banking services. KVB DLite, the Mobile Banking app of the bank, offers the convenience of financial and non-financial services and provides a simple and secure way to manage your banking on the go.
The bank commands a market capitalization of ₹21,789 Crore and is part of several key stock indices. KVB is part of Nifty 500, Nifty Smallcap 100, Nifty500 Value 50, Nifty MidSmallcap 400, Nifty Smallcap 250, Nifty 500 Multicap 50:25:25, Nifty Total Market, Nifty500 Equal Weight, and Nifty500 LargeMidSmall Equal-Cap Weighted indices.
KVB's journey from a modest beginning in 1916 to becoming one of India's prominent private sector banks reflects its resilience, adaptability, and commitment to serving customers across various segments. With strong financial fundamentals, robust asset quality, and strategic focus on growth areas, the bank is well-positioned to capitalize on India's growing banking sector opportunities.
