Deposit-Lending Duo: Karur Vysya Bank Posts 15% Growth in Advances and Deposits as of June 2025

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Karur Vysya Bank Ltd (KVB) has reported a robust start to FY2025–26, with both advances and deposits registering double-digit year-on-year growth as of June-end. The performance underscores the bank’s continued traction in retail and SME lending, supported by a stable deposit franchise and expanding digital footprint.

Here’s a detailed breakdown of the bank’s financial momentum and strategic positioning.

Key Performance Highlights as of June 30, 2025

- Gross advances rose 15.00 percent year-on-year, reflecting healthy credit demand across retail, agriculture, and MSME segments
- Total deposits increased 15.49 percent year-on-year, indicating strong customer confidence and effective mobilization strategies
- The credit-deposit ratio remained within a comfortable range, supporting balanced growth and liquidity management
- The bank’s CASA (Current Account Savings Account) ratio is expected to remain stable, aided by digital onboarding and branch-level initiatives

Lending Growth Drivers

- KVB’s focus on secured retail lending, including home loans and gold loans, has contributed significantly to the uptick in advances
- The bank continues to deepen its presence in Tier 2 and Tier 3 cities, leveraging its legacy franchise and relationship-based banking model
- SME and agri-loans remain core pillars, supported by co-lending partnerships and government-backed credit schemes

Deposit Franchise and Liability Strategy

- The 15.49 percent growth in deposits reflects a well-diversified liability base across term deposits, savings accounts, and NRI deposits
- The bank has introduced flexible deposit products and digital savings tools to attract younger and tech-savvy customers
- KVB’s branch network and customer service model continue to play a key role in deposit mobilization, especially in southern India

Outlook and Strategic Priorities

- Management is targeting mid-teen growth in both advances and deposits for FY26, with a focus on asset quality and cost efficiency
- The bank is investing in analytics-driven credit underwriting and digital loan origination to improve turnaround times
- With a strong capital adequacy ratio and improving return metrics, KVB is well-positioned to sustain its growth trajectory

As Karur Vysya Bank builds on its legacy of prudent banking, the June-end performance signals a confident stride into FY26—anchored in credit discipline, deposit strength, and digital agility.

Sources: Karur Vysya Bank Investor Updates, Economic Times, July 1, 2025