Karur Vysya Bank (KVB IN) – Q2FY27 Result Update – Gold loan portfolio protecting asset quality – BUY
Published on 16 Oct 2026
KVB saw a steady quarter as core PPoP was in-line. Loan growth was healthy at 6.6% QoQ mainly led by offtake in commercial/corporate. Bank sees no major stress in gold loans, supported by a digitized and central margin-call mechanism. KVB guided a loan growth of 18-20%; it could be higher (we see 22%). We are optimistic about KVB; while TWO recoveries are reducing, the bank has de-risked its business model given the increased share of gold over the last 2 years. This would imply lower recoveries that would be offset by lesser slippage/credit costs. We keep multiple at 1.7x but increase TP to INR380 from INR345 as we roll forward to Sep’28 ABV. Retain ‘BUY’.
