Karur Vysya Bank: Margins Flat in Q4, No Capital Raise Needed Amid Strong Profits

• Karur Vysya Bank expects margins to remain flat in Q4FY26 due to the absence of deposit repricing benefits seen in Q3FY26.
• The bank will prioritize growth in retail, agriculture, and MSME (RAM) portfolios, focusing on yield and risk-adjusted returns.
• Gold loans will be capped below 35% of the total loan book, and corporate growth will remain selective.
• Profit has grown 20 times in five years, with Q3FY26 profit reaching ₹690 crore, significantly up from ₹35 crore in December 2020.
• No immediate need to raise capital for the next two years, as capital adequacy is comfortable at around 17% and profitability is improving.

Why It Matters: Karur Vysya Bank anticipates stable margins and strong profits, negating the need for capital raise in the near term.