Karur Vysya Bank share price movement
Share price of Karur Vysya Bank surged over 5 per cent, hitting a new lifetime high of ₹374.95 in Monday’s intraday trade on the NSE backed by heavy trading volume. The banking stock gained 8.5 per cent in the last two trading sessions after reporting its Q2 earnings. The stock significantly outperformed in the last year, surging 68 per cent from its 52-week low of ₹222.79 hit on October 16, 2025. In the current calendar year 2026, the stock rallied 42 per cent. In comparison, the Nifty 50 and the Bank Nifty were down 11.5 per cent and 6.6 per cent, respectively. At 09:55 AM, Karur Vysya Bank stock pared some gains, quoting 3.3 per cent higher at ₹367. The counter saw trades of around 43 lakh shares on the NSE.
Brokerages maintain positive outlook on Karur Vysya Bank
Analysts at Equirus Securities highlighted that Karur Vysya Bank (KVB) delivered strong Q2 earnings, with 2QFY27 Return on Assets (RoA) of 2.1 per cent, supported by (a) NIM holding steady quarter-on-quarter (QoQ) at 4.26 per cent, (b) contained slippages/credit cost of 46bps/44bps (1QFY27: 55bps/33bps) and (c) controlled opex growth of 2 per cent YoY. KVB raised FY27 Net Interest Margin (NIM) guidance to >4 per cent (earlier: 3.7-3.8 per cent) and loan-growth guidance to 18-20 per cent (earlier: 200bps above system growth) as the bank’s 57 per cent were repo-linked. Further, KVB sees no stress in its jewel-loan portfolio and has calibrated retail gold-loan growth, having raised rates to 14 per cent earlier. Agri gold-loan rates were increased by 100 basis points (bps) to 10.75 per cent in prior quarters. With loan tenures of 6-12 months and no further rate increases planned, incremental repricing benefits will be limited, the brokerage firm said. “Repo-hike benefits and a rising share of repo-linked loans lead us to raise FY27 earnings estimates by 7 per cent. We roll over to a Sep’27 TP of ₹400 (earlier: ₹370 for Mar’27), valued at 1.8x Sep’28 ABV. We model FY27E/FY28E RoAs of 2.1 per cent/ 2.0 per cent,” Equirus said in a note post Q2 earnings. Among the key risks, the brokerage flags a possible increase in slippages, growth slowdown, an increase in the competitive environment and a sharp correction in Gold prices affecting the portfolio growth as well as asset quality trends. Analysts at Elara Capital recommended a ‘Buy’ rating on the stock with a target price of ₹415 per share. The brokerage says that despite headwinds, KVB delivered strong earnings, well ahead of peers. Elara expects KVB to sustain RoA of 2 per cent+ and deliver earnings CAGR of ~20 per cent in FY27E-29E. “However, competitive pressures may cap any meaningful re-rating, positioning KVB as a steady compounder and a defensive bet. We recommend BUY with a TP of ₹415, based on 2.0x Sep FY28E P/BV. Key risks are ECL transition costs and MSME stress from macro-headwind, which could weigh on asset quality and credit costs,” the brokerage said. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.
