Karur Vysya Bank shares fall over 1%; here is the update you need to know

“The bonus shares so allotted by the Bank shall rank pari passu with existing equity shares of the Bank,” it said in a regulatory filing.

On July 24, the private lender had issued bonus equity shares in the proportion of 1:5, i.e., 1 (one) equity share of face value ₹2 each for every 5 (five) fully paid-up equity shares of ₹2 each held by the members of the bank.

The shareholders in the Annual General Meeting (AGM) held on August 21, 2025, had approved the issuance of bonus equity shares.

Following the development, Karur Vysya Bank were trading at ₹214.35 apiece, falling 0.81% on the National Stock Exchange. It had touched an intraday low of ₹213.40 per share, slipping 1.24%.

The private sector lender had reported a 13.5% year-on-year (YoY) increase in net profit at ₹521 crore for the quarter ended June 30, 2025, as compared to ₹459 crore in the same quarter last year.

Its net interest income (NII) grew 5.1% YoY to ₹1,080 crore as against ₹1,027 crore in Q1 FY25.

Karur Vysya Bank had posted a 15.27% growth in its balance sheet on a YoY basis, with total assets standing at ₹1,25,371 crore as of June 30, 2025, compared to ₹1,08,766 crore a year earlier. The bank’s total business reached ₹1,96,024 crore, marking an increase of ₹25,965 crore from ₹1,70,059 crore in the same period last year.

Net interest margin for the quarter stood at 3.86%, compared to 4.14% in the same quarter last year. The cost of deposits increased by 29 basis points to 5.77%, while the yield on advances declined by 12 basis points to 10%. 

The asset quality improved, with gross non-performing assets (GNPA) reducing to 0.66% of gross advances (₹593 crore) from 1.32% (₹1,025 crore) last year. Net NPA declined to 0.19% (₹170 crore) from 0.38% (₹294 crore). Provision coverage ratio improved to 96.76% from 94.91%.