Stories
Karur Vysya Bank Lowers Gold Loan Exposure Limit to 32% and Raises NIM Guidance
C
CNBC TV18•16-10-2026, 15:30
Karur Vysya Bank Lowers Gold Loan Exposure Limit to 32% and Raises NIM Guidance
- •Karur Vysya Bank has lowered its internal gold loan exposure limit from 35% to 32% of total advances to prioritise disciplined growth and manage concentration risk.
- •Gold loans currently account for about 26% of the bank's advances, leaving ample room for balanced growth across various verticals.
- •The bank raised its net interest margin guidance to above 4% from 3.7-3.8%, backed by stable asset quality and strong Q2FY27 financial results.
- •A centralised monitoring system has been introduced to track loan-to-value ratios and margin calls daily, ensuring tighter risk management.
- •Management remains confident about maintaining a return on assets of around 2% and minimizing adverse impacts from treasury yield movements.
Key Questions Answered
Karur Vysya Bank lowered its internal exposure limit for gold loans to 32% of total advances, down from 35% previously.
In the July-September quarter (Q2FY27), Karur Vysya Bank reported a net interest margin of 4.26% and a net profit of ₹788 crore.
The bank has centralised its monitoring system for loan-to-value ratios and margin calls, reviewing accounts daily and initiating auctions within 15 to 20 days if positions are not regularised.
