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Informist, Wednesday, Jan. 21, 2026

 

By Durgesh Nandan

 

MUMBAI – Karur Vysya Bank is expected to post a robust double-digit on-year growth and a marginal fall on sequential basis in its December quarter net profit. The lender's net profit is expected to rise over 14% on year and fall nearly 1% from the trailing quarter to around INR 5.68 billion for the reporting quarter, according to the average of estimates from six brokerages.

 

The highest estimate for the December quarter net profit is INR 6.18 billion from Elara Securities (India) Pvt. Ltd, while the lowest estimate is INR 5.29 billion from Kotak Securities Ltd. The pressure on revenue growth due to the ongoing net interest margin compression cycle is likely to limit rise in net profit to 6%, according to Kotak Securities.

 

The bank's net interest income for the latest quarter is estimated to decline nearly 4% on quarter and rise over 12% on year to around INR 12.1 billion, based on the average of estimates. The highest estimate for the bank's net interest income is INR 13.03 billion from YES Securities (India) Ltd. and the lowest estimate is INR 11.4 billion by ICICI Securities Ltd.

YES Securities expects net interest income growth to be slower than average loan growth due to a fall in yield on advances outpacing the fall in cost of deposits.

 

Analysts have mixed views on the bank's net interest margin. Four brokerages foresee a decline of 1-43 basis points on quarter. YES Securities attributes the likely decline in margin to the fall in yield on advances being steeper than fall in cost of deposits. However, Elara Securities expects a slight increase in the margin. On a year-on-year basis, three brokerages expect the net interest margin to decline 25-31 bps. Two brokerages have not provided any data on the margin.

 

Of the seven brokerage reports on the company available with Informist, six have a 'buy' or equivalent recommendation on the stock with an average target price of INR 270, which is nearly 6% higher than Wednesday closing price of INR 254.75 on the National Stock Exchange. One brokerage has a 'sell' or equivalent recommendation on the stock with an average target price of INR 168.

 

Shares of the bank have risen 12% since its September quarter results were released on Oct. 17. The bank will announce its earnings for the December quarter Friday.

 

Following are the December quarter earnings estimates for Karur Vysya Bank from six brokerage firms in descending order of the estimate of net profit in INR billion:

 

 

Brokerage	Net Interest Income	Net Profit
Elara Securities (India) Pvt Ltd	11.99	6.18
Emkay Global Financial Services Ltd	12.82	5.78
YES Securities (India) Ltd	13.03	5.76
ICICI Securities Ltd	11.43	5.56
SMIFS Ltd	11.70	5.55
Kotak Securities Ltd	11.73	5.29
Average	12.12	5.68

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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