Karur Vysya Bank (KVB IN) – Q4FY26 Result Update – Earnings quality remains in top quartile – BUY
Published on 08 May 2026
KVB saw a strong quarter with higher core PAT due to beat on NII/NIM & TWO recovery and lower opex. Reported NIM was up 26bps QoQ to 4.25% led by (1) 16bps increase in loan yields (as fixed rate book was up from 23% to 29%) and (2) downward repricing of deposits. Superior core income allowed creation of buffer provisions of INR 1.6bn as KVB is cautious on the impact of the conflict; new ECL guidelines would not have a material effect. With core RoA of ~1.6% and core PAT CAGR of ~16%, we are optimistic on KVB given strong balance sheet and earnings quality. We assign a multiple at 1.7x on FY28 ABV and to arrive at a TP of INR 345. Give a ‘BUY’ rating.
