Karur Vysya Bank (KVB IN) – Q1FY27 Result Update – Stable NII/NIM QoQ; upgrade in margins – BUY
Published on 21 Jul 2026
KVB saw a steady quarter as loan growth, NII/NIM and fees were in-line. Core PPoP was a miss by 3% due to lower TWO recovery (guided to improve). While loan growth for FY27 is guided at 1-2% above industry; bank would prefer RAM growth while being cautious on corporate. We see loan growth of 17/16% in FY27/28E. NIM performance has been strong since last 4 quarters due to calibration in asset mix; NIM for Q2’27 is guided to be >4% with upside risk while full year NIM guidance of 3.7-3.8% would be revisited post Q2’27. We raise NIM for FY27/28E by 5bps each leading to core PAT upgrade of avg. 2.7%. We keep multiple at 1.7x and maintain TP of INR 345. Retain ‘BUY’.
