Karur Vysya Bank Limited — Q3 FY26 earnings call

Nothing actually because I'll tell you, last time also when we were mentioning, when we looked at our repricing of the deposit, major chunk of the deposits have come up in this quarter for the repricing. That has really helped us to reprice the deposit. Other than that, no one-off item like last quarter to what we had, nothing is there...

Clarifies that the strong NIM expansion in Q3 was organic, primarily driven by deposit repricing, rather than one-off events.

Asked by Jai Mundhra

Jai, it looks like that. It looks like that actually because when we are focusing on what we are supposed to do, the numbers have derived from the efforts what we have made. But now if you look at it, everything is more or less organically what all we have done, no one-off and nothing has come here.

Confirms that the improved ROA is a result of sustained operational efforts and not temporary factors, suggesting a new, higher trajectory.

Asked by Jai Mundhra

Board has -- let me be very frank with all of you. Board has been insisting for a 3-year term extension for me... So finally, I took a call for an extension of 2 years. That will practically, if you look at it, 2.5 years from now onwards, so I'll be continuing there and all. In the meanwhile, what all other things are there for that, all these things will be taken care of smoother transition and all. So that way at 5:00, we have uploaded about my extension for 2 years. And RBI will be approached and for the approval.

Provides clarity on leadership continuity with a 2-year extension for the MD & CEO, addressing investor concerns about succession planning.

Asked by Jai Mundhra

Ideally, had we left it that way, we would have got a hit. But what we did, some of the low-yielding accounts, what all are there, either exiting or engaging with them for a higher pricing. And not only that shifting the rates, floating to fixed rate at a higher rate, all these things have supported us. So that way, we are able to maintain 9.76% to 9.77%, same levels we are able to maintain that. ... our 91% of the portfolio is agriculture-jewel loans. Last year, luckily, Reserve Bank of India has consolidated and gave a clarity.

Explains how the bank maintained stable advance yields through active portfolio management and clarifies that the agri book is largely agri-jewel loans, which have regulatory clarity, mitigating PSL concerns.

Asked by Rikin Shah

I agree with you. Yes, it may not move the same way as the benefit what we have got because when we bucket it quarter-wise, what all the accounts, what are the deposits to be repriced. So it got bunched up majority because we started a product like 400, 444 days, those sort of products when we have launched 1.5 years back, they got majority matured in this quarter. That's why we could get the benefit of it. Next quarter onwards, it will be normalcy.

Provides crucial context on the Q3 cost of funds reduction, indicating it was due to specific deposit maturities and that this benefit may not recur in Q4, implying potential future pressure on NIM.

Asked by Rohan Mandora

No, I agreed, but I'll tell you it's slightly a deceptive thing of thinking because the technical write-off accounts are there with NCLT. So you will not have any visibility when the money will come out because legal proceedings are going on. And second thing, even if finally, NCLT, these things come out also, how much is the value we are going to get out of that is also not known.

Highlights the uncertainty and lack of clear visibility on future recoveries from the technical write-off pool, suggesting that these cannot be reliably factored into future earnings.

Asked by Rohan Mandora

I agree. But you see in my initial statement, I mentioned we are always above 100%. It hovers around 120%, 133%. But even if this sort of effect is there, it can be around 5 basis points... Not 5 basis points. 2% to 3%... sorry, not basis points percentage. Percentage, 2 to 3 percentage can come down.

Clarifies the bank's strong LCR position and quantifies the potential impact of a new regulatory circular from FY27 as a manageable 2-3 percentage point drop.

Asked by Param Subramanian

It is too early here because the reason is every quarter, we need to pass through. The question is not the question of growing in the loan book. All loan vertical engines are firing. Now whether we'll be able to fund them with proper raw material. I understand, I suppose if you give 0.5% more on the deposit, you will be able to raise money, then it doesn't look nice, having taking a bearing on the margins and the sort of money.

Indicates that future loan growth is constrained by the ability to mobilize deposits at a reasonable cost without compromising margins, making deposit growth a key focus area.

Asked by Param Subramanian