Karur Vysya Bank Declares 1:5 Bonus Shares After 7 Years: Key Trading Tactics You Need Before Record Date

Karur Vysya Bank on Thursday announced that its Board of Directors declared bonus shares in the ratio of 1:5. This corporate action has been approved after a gap of 7 years by the bank, as in August 2018, Karur Vysya Bank had last declared bonus shares in a ratio of 1:10. In addition to announcing bonus shares, Karur Vysya Bank released its financial results for the quarter that concluded on June 30, 2025.

Karur Vysya Bank Bonus Shares

The Board of Directors at its meeting held today declared and considered "issuance of Bonus equity shares in the proportion of 1:5 i.e. 1 (one) equity share of face value Rs 2/- each for every 5 (five) fully paid-up equity share of Rs 2/- each held by the Members of the Bank as on the Record Date (mentioned below), subject to the approval of the Members of the Bank at the ensuing AGM and other statutory and regulatory approvals, if any. The record date for determining the entitlement of the Members of the Bank to receive bonus equity shares is 26th August, 2025," said Karur Vysya Bank in a stock exchange filing on Thursday.

Karur Vysya Bank Q1FY26 Results

From Rs 459 crore in the same quarter last year to Rs 521 crore this quarter, the net profit showed a 13.51% growth. The bank's net interest income climbed by 5.16% to Rs 1,080 crore from Rs 1027 crore in the same quarter last year, while its net interest margin is now 3.86% compared to 4.14 percent in the same quarter last year.

Karur Vysya Bank said that its operating expenses for the quarter were Rs 721 crore, up from Rs 667 crore in the same period last year. Additionally, the bank's cost-to-income ratio was 47.24%, up from 47.20% in the first quarter of the previous year.

The bank's balance sheet size jumped by 15.27% from Rs 108,766 crore on June 30, 2024, to Rs 1,25,371 crore on June 30, 2025. With a total business of Rs 1,96,024 crore as of June 30, 2025, the bank has grown 15.27% YoY, or by Rs 25,965 crore, from Rs 1,70,059 crore in the same quarter of the previous fiscal year. As of 30 June 2025, Karur Vysya Bank's total deposits had surpassed one lakh crore and were at Rs 1,06,650 crore, representing a 15.49% YoY growth of Rs 14,301 crore from Rs 92,349 crore in the year-ago quarter.

The total advances as of June 30, 2025, are Rs 89,374 crore, representing a 15.01% YoY rise of Rs 11,664 crore from Rs 77,710 crore on June 30, 2024.

The bank's asset quality has significantly improved. In comparison to 1.32% (Rs 1,025 crore) a year ago, the Gross Non-Performing Assets (GNPA) ratio has dropped significantly by 66 basis points to 0.66% of gross advances (Rs 593 crore) as of June 30, 2025. At 0.19% of net advances (Rs 170 crore) compared to 0.38% (Rs 294 crore) during the same period previous year, the Net Non-Performing Assets (NNPA) ratio has also improved dramatically. A strong provisioning cushion is shown by the Provision Coverage Ratio (PCR), which has increased to 96.76% from 94.91% a year ago.

Mr. Ramesh Babu B, Managing Director & CEO, The Karur Vysya Bank said, "We are pleased to report that our performance indicators align with our previously issued guidance. Notably, we successfully front-loaded growth in the first quarter of this financial year, consistent with our approach over recent years. Our sustained and inclusive results across all three key metrics-growth, profitability, and asset quality-demonstrate the ongoing strength of our performance since the beginning of the year."

Karur Vysya Bank Target Price?

"Karur Vysya Bank is showing early signs of a bullish base, with support around ₹260 and resistance at ₹280. A breakout above ₹280 could trigger a move toward ₹300. If it slips below ₹260, the stock may test ₹250. Price action remains stable above its 50-day moving average, and rising volume on dips indicates buying interest. Traders may consider buying on dips near ₹265 with a stop-loss below ₹260, targeting a breakout above ₹280 for confirmation of the next leg upward," commented Riyank Arora, technical analyst at Mehta Equities.

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