Karur Vysya Bank

** Shares of lenders IndusInd Bank INBK.NS, AU Small Finance Bank AUFI.NS, Bandhan Bank BANH.NS and Karur Vysya Bank KARU.NS rise on strong first-quarter updates

** Analysts say pre-earnings updates show strong loan growth in June quarter

** Morgan Stanley says most banks post faster year-on-year loan and deposit growth, broadly in line with system-level trends through mid-June

** Notes loan and deposit growth picked up on a seasonally adjusted basis for most lenders, while CASA ratios moderated and loan-to-deposit ratios increased as expected

** Overall, bank index .NSEBANK up 0.6%, with benchmark Nifty 50 .NSEI up 0.6%

** BANH leads gains among pack, rising 2.8%, trailed by INBK, which is up 2%

** AUFI and KARU climb 1.8% and 1.6%, respectively

** "Most of the banks which reported June quarter provisional numbers have met or exceeded our estimates," Piran Engineer of CLSA says

** "While overall growth has been strong, we remain watchful of the granularity within loan book expansion and potential impact of declining CASA ratios on margins," Engineer says

** YTD, BANH stock's 41.3% jump highest while AUFI's 8.3% climb the smallest

(Reporting by Kashish Tandon in Bengaluru)

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July 1 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• ADVANCES RISE 17.12% Y/Y AS OF JUNE END

• TOTAL DEPOSITS AS OF JUNE 30 UP 14.94% YOY

Source text: [ID:]

Further company coverage: KARU.NS

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June 19 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• KARUR VYSYA BANK LTD - ONE YEAR MCLR REVISED TO 9.25% FROM 9.15%

Source text: [ID:]

Further company coverage: KARU.NS

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June 12 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• KARUR VYSYA BANK - RAISES FCNR DEPOSIT RATES, OFFERS UP TO 7% P.A. ON US DOLLAR DEPOSITS

Source text: [ID:]

Further company coverage: KARU.NS

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May 20 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• KARUR VYSYA BANK LTD - ONE-YEAR MCLR REMAINS UNCHANGED AT 9.15%

Source text: ID:nNSEb3Jkmg

Further company coverage: KARU.NS

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May 7 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• KARUR VYSYA BANK Q4 NET PROFIT 7.25 BILLION RUPEES

• KARUR VYSYA BANK Q4 GROSS NPA 0.75%

• KARUR VYSYA BANK Q4 INTEREST EARNED 29.04 BILLION RUPEES

• KARUR VYSYA BANK Q4 PROVISIONS AND CONTINGENCIES 2.58 BILLION RUPEES

• KARUR VYSYA BANK LTD - DIVIDEND 2.6 RUPEES PER SHR

Further company coverage: KARU.NS

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By Dharamraj Dhutia

MUMBAI, April 7 (Reuters) - India's central bank is likely to allow overnight interbank rates to stay near the floor of the policy corridor for longer and refrain from draining liquidity to avoid unsettling an already fragile debt market sentiment, bankers said.

Lower overnight funding costs offer some relief to a market contending with the fallout from the Iran war, which has driven up oil prices and stirred volatility in the rupee.

The weighted average call money rate (WACR) has been below 5.10% in April so far and is set to decline further, as liquidity in the banking system has moved into ample surplus. The secured overnight borrowing rate slipped to around 4.80%, highlighting the extent of liquidity surplus.

WACR stayed around 5.10% for most of February and March, and markets had expected the central bank to begin liquidity-draining operations with the start of the new fiscal year in April to bring it back to near the 5.25% policy rate.

The central bank seeks to keep the WACR at or around its policy rate, it said in February.

"Since the RBI tolerated it for the last two months, there is no point in disturbing the markets at a time when a small negative point could trigger a larger selloff in government bonds," a treasury head at a large private bank said, requesting anonymity since he is not authorised to speak to media.

Tightening measures such as variable rate reverse repos do not appear warranted at this juncture, said VRC Reddy, treasury head at Karur Vysya Bank.

"There is little risk in allowing overnight rates to remain near the lower bound of the policy corridor for some more time."

He expects the RBI to maintain a neutral stance at its policy decision due on Wednesday, "without signalling any significant concern".

Liquidity surplus was around 4 trillion rupees ($43 billion), and with nearly 1.2 trillion rupees set to flow in from maturing government securities this week, surplus could hit 2% of deposits — well above the 1% threshold flagged by the RBI in December.

Tanay Dalal, senior vice president for business and economic research at Axis Bank, said that while tightening monetary policy is a valid strategy for currency defence, regulatory and unconventional tools will continue to be deployed instead.

($1 = 92.96 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Harikrishnan Nair)

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April 1 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• TOTAL DEPOSITS AS OF MARCH-END UP 13.31% Y/Y

• ADVANCES AS OF MARCH-END UP 16.87% Y/Y

Source text: ID:nNSEbR5Fmw

Further company coverage: KARU.NS

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March 20 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• KARUR VYSYA BANK LTD - REVISES BASE RATE TO 10.50%, BPLR TO 15.50% EFFECTIVE MARCH 24, 2026

Source text: ID:nNSE8vZ0zw

Further company coverage: KARU.NS

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By Dharamraj Dhutia

MUMBAI, March 17 (Reuters) - Indian banks had limited appetite for borrowing from the central bank's seven-day cash infusion operation on Tuesday, despite a narrowing in liquidity surplus, underscoring the need for more flexible options such as allowing prepayment, bankers said.

The Reserve Bank of India infused 480 billion rupees ($5.2 billion) against an offer of 1.50 trillion rupees via the variable repo rate operation, in which banks compete for funds by quoting different rates.

Liquidity surplus in the banking system, meanwhile, was at a seven-week low.

WHY IT'S IMPORTANT

The weak demand reflects a preference for very short-duration borrowing for flexibility. It signals that term funding, which is lending for longer than a day, is less attractive despite moderating cash surplus conditions.

This was evident in late January, when the RBI managed to infuse 1.36 trillion rupees in a 90-day window after allowing banks to repay early.

That helped keep banking system liquidity above 1% of deposits over the past one-and-a-half months. Such comfortable liquidity is considered essential for smooth policy transmission.

KEY QUOTES

"The response to the repo clearly indicates that the demand for funds is very short-term. So from market's point of view, the RBI should experiment with 7-day or 14-day repos with a prepayment option," said A Prasanna, chief economist at ICICI Securities Primary Dealership.

"Repos with flexible reversals work well for banks, especially right now. Prepayment option gives banks a safety net without trapping them in unnecessary borrowing for a larger period," said VRC Reddy, treasury head at Karur Vysya Bank.

BY THE NUMBERS

India's banking system liquidity surplus dropped to around 750 billion rupees on Monday, which is just around 0.3% of deposits, down from an average of around 2.5 trillion rupees in the last one-and-a-half months.

GRAPHIC

($1 = 92.4325 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Harikrishnan Nair)

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March 3 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• OPENS NEW BRANCH IN PATTABIRAM

Source text: ID:nNSE5Hlzn1

Further company coverage: KARU.NS

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Feb 13 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• RBI APPROVES ICICI AMC TO BUY UP TO 9.95% OF KARUR VYSYA BANK

Source text: ID:nBSE2mZP4M

Further company coverage: KARU.NS

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Jan 23 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• Q3 NET PROFIT 6.9 BILLION RUPEES

• Q3 GROSS NPA 0.71%

• Q3 INTEREST EARNED 27.94 BILLION RUPEES

• Q3 PROVISIONS AND CONTINGENCIES 1.05 BILLION RUPEES

Further company coverage: KARU.NS

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** Shares of South Indian Bank SIBK.NS rise 2.1% to 38.7 rupees

** Lender's provisional total deposits for quarter-ended Dec. 31 rises 12.2% Y/Y; gross advances up 11.3%

** Stock gained 53% in value last year, compared with 45% and 68% rise in peers Karur Vysya Bank KARU.NS and City Union Bank CTBK.NS, respectively

(Reporting by Aleef Jahan in Bengaluru)

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Jan 1 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• TOTAL DEPOSITS AS ON DEC 31, 2025 AT 1.15 TRILLION RUPEES, UP 15.57% YOY

• TOTAL BUSINESS AS ON DEC-END UP 16.29% Y/Y

Source text: ID:nNSE4vX8J4

Further company coverage: KARU.NS

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July 24 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• JUNE-QUARTER NET PROFIT 5.21 BILLION RUPEES

• JUNE-QUARTER GROSS NPA 0.66%

• JUNE-QUARTER INTEREST EARNED 25.69 BILLION RUPEES

• JUNE-QUARTER PROVISIONS AND CONTINGENCIES 1.18 BILLION RUPEES

• ISSUANCE OF BONUS EQUITY SHARES IN THE PROPORTION OF 1:5

Source text: [ID:]

Further company coverage: KARU.NS

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July 1 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• TOTAL DEPOSITS AS OF JUNE END UP 15.49%

• ADVANCES AS OF JUNE END UP 15.00% Y/Y

Source text: ID:nnAZN42HU0W

Further company coverage: KARU.NS

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By Dharamraj Dhutia

MUMBAI, June 26 (Reuters) - The Reserve Bank of India's (RBI) holdings of Indian government securities climbed to a record in absolute terms following aggressive debt purchases, but analysts anticipate a reduction as the year progresses.

The RBI's bond holdings rose to 12.78% of the outstanding issuances as of March-end from 10.55% at December-end, according to central bank data released on Wednesday.

In absolute terms, this amounts to approximately 14.88 trillion rupees ($173.55 billion), a record high, marking an increase of 2.83 trillion rupees in the January-March quarter.

The central bank had purchased bonds worth 2.45 trillion rupees via open market operations (OMOs) and an additional 388 billion rupees through secondary market transactions in the quarter.

Analysts noted that the RBI's holdings might diminish in the coming months as some of the debt matures. The central bank holds between 500 billion rupees to 1 trillion rupees of securities that mature in this financial year.

"Holdings may further go up for the current quarter, but in most cases, OMOs are now behind us, especially after the central bank announced a reduction in cash reserve ratio and a reverse repo," said VRC Reddy, treasury head at Karur Vysya Bank.

The RBI aims to keep liquidity above 1% of deposits till March 2026, according to Gaura Sen Gupta, chief economist with IDFC First Bank.

To that end, it announced a 100 basis-point reduction in banks' cash reserve ratio, effective from September to December, in its policy meeting in June. The RBI also cut its repo rate by 50 basis points and shifted its policy stance to neutral.

"In our base case, we do not expect more OMO purchases" for the rest of this financial year, Sen Gupta said.

The central bank will also conduct a seven-day variable rate reverse repo auction for 1 trillion rupees on Friday. Market participants see this as part of the RBI's strategy to align the weighted average call rate closer to the repo rate, which will further tweak liquidity.

If growth undershoots the RBI's expectation, they may choose to loosen the liquidity valve, said Dhiraj Nim, an economist and FX strategist at ANZ Research.

Sen Gupta noted that additional OMO purchases would likely depend on significant capital outflows. "For now, in our base case, we expect balance of payments to be a small surplus in fiscal 2026," she said.

($1 = 85.7400 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Janane Venkatraman)

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April 1 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• TOTAL DEPOSITS UP 14.55% Y/Y AS OF MARCH 31

• TOTAL ADVANCES UP 13.52% Y/Y AS ON MARCH 31

Further company coverage: KARU.NS

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** India's Karur Vysya Bank KARU.NS rises 2.8% to 214.99 rupees

** Axis Capital initiates coverage with "buy" rating, PT of 295 rupees, indicating implied upside of 41% over its last close

** Brokerage's PT on KARU is the third-highest among 14 analysts tracking the stock, which has an average rating of "strong buy"

** Management overhaul, introduction of digital underwriting and a focus on agriculture, retail and commercial bank loans augur well for KARU's earnings growth, says Axis

** Says, changes in underwriting to help keep credit costs lower

** Brokerage estimates loan growth and PAT growth CAGR of 16% and 13%, respectively, over FY2025-2027

** KARU shares down 2.3% in 2025 vs 14.2% fall in the smallcap 100 index .NIFSMCP100

(Reporting by Bharath Rajeswaran in Bengaluru)

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Jan 20 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• INDIA'S KARUR VYSYA BANK DEC-QUARTER NET PROFIT 4.96 BILLION RUPEES

• KARUR VYSYA BANK DEC-QUARTER GROSS NPA 0.83%

• KARUR VYSYA BANK DEC-QUARTER INTEREST EARNED 24.86 BILLION RUPEES

Source text: [ID:]

Further company coverage: KARU.NS

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** Shares of South Indian Bank SIBK.NS up 3%, set for their best day in nearly a month

** Lender reports an about 12% year-on-year rise in Q3 gross advances, total deposit rises 6.3%

** Stock sees busiest day since Dec. 6, trading vols at 2 times their 30-day average

** SIBK gained 2% in 2024, compared with 28.5% and 16% rise in peers Karur Vysya Bank KARU.NS and City Union Bank CTBK.NS, respectively

(Reporitng by Nishit Navin)

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** Shares of Karur Vysya Bank KARU.NS rise as much as 4.1% to 226 rupees, before easing to 3% gains

** Lender's provisional total deposits grew 15.75% y/y as of Dec 31, while advances grew 13.96%

** 12 analysts' avg rating is equivalent of "strong buy"; median PT 252 rupees, ~13% higher than current price -LSEG data

** Stock has more than doubled in value in a seven-qtr rally

** It gained 28.6% in 2024, rising for third straight year

(Reporting by Anuran Sadhu in Bengaluru)

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Dec 3 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• KARUR VYSYA BANK - RBI IMPOSED PENALTY OF 10,000 RUPEES FOR DISCREPANCIES AT CURRENCY CHEST

Further company coverage: KARU.NS

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Nov 8 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• KARUR VYSYA BANK - RESERVE BANK OF INDIA IMPOSED MONETARY PENALTY OF 20,000 RUPEES

• KARUR VYSYA BANK - PENALTY FOR DEFICIENCIES OBSERVED IN PROVIDING EXCHANGE OF MUTILATED NOTES

Source text: ID:nNSE2H1sdp

Further company coverage: KARU.NS

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** Shares of India's Karur Vysya Bank KARU.NS up 5% to 215 rupees

** Lender posted ~25% Y/Y rise in net profit for Sept qtr, while interest earned grew about 19%

** Stock set to extend gains for a second straight session

** Mean recommendation of all analysts covering KARU is "strong buy", median TP is 249 rupees - LSEG data

** Stock has gained ~29% YTD

(Reporting by Yagnoseni Das in Bengaluru)

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Aug 6 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• KARUR VYSYA BANK LTD - REVISES ONE YEAR MCLR FROM 10.10% TO 10.00%, EFFECTIVE AUG 7

Source text for Eikon: [ID:]

Further company coverage: KARU.NS

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Updates market reaction, quotes

By Dharamraj Dhutia

MUMBAI, July 23 (Reuters) - The Indian government has lowered its planned gross market borrowing by 120 billion rupees ($1.44 billion) for the financial year ending March 2025, Finance Minister Nirmala Sitharaman announced in the federal budget on Tuesday.

The government aims to borrow a gross of 14.01 trillion rupees, down from 14.13 trillion rupees announced at the time of the interim budget in February.

In the previous financial year, the government borrowed 15.43 trillion rupees.

It also aims to reduce its fiscal deficit to 4.9% of gross domestic product (GDP), down from 5.1% in interim budget.

WHY IT'S IMPORTANT

Government borrowings are one of the key drivers for bond yields, which have fallen since the start of this financial year.

India's government finances have also come into sharper focus this year as local currency bonds have been included in JPMorgan's emerging market debt index.

Foreigners bought $8 billion worth of bonds on a net basis in 2024, and the outlook on government finances is being watched keenly by offshore investors.

MARKET REACTION

Government bond yields eased briefly, with the benchmark 10-year bond yield IN10YT=RR easing to 6.9260%, lowest since April 2022.

However, yields reversed immediately as cut in borrowing was below what many market participants were anticipating.

The benchmark bond yield IN071034G=CC was at 6.9723%, against 6.9633% previous close.

KEY QUOTES

We aim to reach fiscal deficit below 4.5% next year. From 2026-27 onwards, our endeavor will be to keep fiscal deficit such that central government debt as a percentage of GDP will be on a declining path, Finance Minister Nirmala Sitharaman said.

"There is some position adjustment as a kneejerk reaction as some investors were expecting a larger cut. Overall budget is positive with priority given to fiscal prudence. I expect benchmark bond yield to ease to 6.90%, with an upside cap of 7.00%," said VRC Reddy, treasury head at Karur Vysya Bank.

"The long-end yields may see some selling pressure, while short-term yields could ease. Still, the benchmark bond yield is likely to top at 7.02%," said Vijay Sharma, senior executive vice president at PNB Gilts.

GRAPHIC

($1 = 83.6200 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Janane Venkatraman )

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** Shares of India's PC Jeweller PCJE.NS rise 4.8% to 70.5 rupees

** Embattled ornaments maker said lender Bank of Baroda BOB.NS has approved one-time settlement proposal for outstanding dues

** IndusInd Bank INBK.NS, Punjab National Bank PNBK.NS, State Bank of India SBI.NS and Karur Vysya Bank KARU.NS had earlier accepted co's proposals to settle unpaid debts

** Session's move takes YTD gains to ~51%

(Reporting by Hritam Mukherjee in Bengaluru)

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July 18 (Reuters) - Karur Vysya Bank Ltd KARU.NS:

• JUNE-QUARTER NET PROFIT 4.59 BILLION RUPEES

• JUNE-QUARTER INTEREST EARNED 22.85 BILLION RUPEES

• JUNE-QUARTER GROSS NPA 1.32%

• JUNE-QUARTER PROVISIONS AND CONTINGENCIES 1.33 BILLION RUPEES

• JUNE-QUARTER NET NPA 0.38%

Further company coverage: KARU.NS

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