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Karur Vysya Bank (KVB) shares hit a record ₹292.7 high on Jan 27, 2026. Discover how stellar Q3 results and Rekha Jhunjhunwala’s stake are driving this 10.85% surge.
While the broader Indian markets have spent much of January 2026 grappling with global volatility and FII outflows, Karur Vysya Bank (KVB) has emerged as a standout performer. On January 27, 2026, the private sector lender defied the subdued market mood, surging a massive 10.85% to touch a new lifetime high of ₹292.7.
This isn't just a speculative spike; it is a fundamental-driven rally supported by "best-in-class" asset quality and the unwavering confidence of marquee investors like Rekha Jhunjhunwala. For investors who have watched KVB transform from a regional player into a high-growth mid-cap powerhouse, today’s move marks a significant milestone in its value-unlocking journey.
The primary catalyst for the rally was the bank's stellar Q3 FY26 performance, which silenced skeptics and reinforced its position as a top-tier private lender.
KVB reported its highest-ever quarterly profit after tax (PAT) of ₹689.96 crores, representing a staggering 39.10% year-on-year (YoY) increase. Even on a sequential basis, the profit grew by 20.21%, proving that the bank's earnings momentum is accelerating rather than tapering off.
In an environment where investors are wary of rising credit costs, KVB’s asset quality remains its strongest moat. The Gross NPA ratio improved to 0.71%, while Net NPAs stayed stable at a negligible 0.19%. With a Provision Coverage Ratio (PCR) of nearly 97%, the bank has created a massive buffer against potential economic shocks.
The rally was further fueled by heavy institutional buying. Institutional investors now hold 57.09% of the bank, increasing their stake by 1.3% in the last quarter alone. When big money moves in tandem with retail sentiment, the resulting momentum is often difficult to break.
A key highlight for many retail investors is the presence of Rekha Jhunjhunwala on the shareholding portal. As of the December 2025 quarter, she holds 4,01,85,019 shares, which translates to a significant 4.16% stake in the bank.
Her holding, currently valued at well over ₹1,100 crore, reflects a "long-term compounding" strategy inherited from the late Rakesh Jhunjhunwala. Unlike many institutional players who churn portfolios frequently, the Jhunjhunwala stake has remained steady, signaling deep conviction in KVB’s management and its focus on the "RAM" (Retail, Agriculture, and MSME) verticals. Her continued presence acts as a psychological floor for the stock, encouraging retail participants to hold through periods of broader market volatility.
The numbers speak for themselves. The table below highlights the key financial metrics that propelled the stock to its new record high:
| Metric | Q3 FY26 (Current) | Q3 FY25 (Previous) | Growth (%) |
|---|---|---|---|
| Net Profit | ₹689.96 Cr | ₹496.03 Cr | +39.10% |
| Total Business | ₹2.12 Trillion | ₹1.82 Trillion | +16.29% |
| Gross NPA (%) | 0.71% | 0.83% | -12 bps (Improvement) |
| Net NPA (%) | 0.19% | 0.20% | -1 bps |
| Return on Equity (ROE) | 16.45% | ~14.2% | +225 bps |
Financial analysts have turned overwhelmingly bullish, with MarketsMojo upgrading KVB to a 'Buy' rating with a high Mojo Score of 72.0. The bank is currently ranked in the top 1% of all companies rated by the platform, a testament to its operational excellence.
While some analysts point toward "margin compression" due to rising deposit costs across the industry, KVB’s ability to grow its low-cost CASA (Current Account Savings Account) deposits by nearly 11% YoY has provided a significant cushion. "KVB is no longer just a value play; it is a quality-growth story. The premium valuation is justified by its superior ROE and pristine balance sheet," noted a senior analyst during the post-earnings conference call.
Looking ahead, Karur Vysya Bank is well-positioned to continue its upward trajectory over the next 6-12 months. The management's focus on digital transformation—led by the KVB DLite app, which now boasts over 1.3 million monthly active users—is expected to drive operational efficiencies and lower the cost-to-income ratio further.
Investors should watch for:
Karur Vysya Bank’s 10.85% surge on January 27 is a clear signal that quality mid-cap banks are taking the lead in the 2026 market cycle. With a combination of record-breaking profits, rock-solid asset quality, and the high-conviction backing of Rekha Jhunjhunwala, KVB remains a "Buy on Dips" candidate for those looking to play the India growth story.