Karur Vysya Bank’s board has approved a bonus issue in the ratio of 1:5, meaning 1 bonus share will be issued for every 5 fully paid-up shares held, as per exchange filing. The face value of each share is ₹2. The record date for determining eligible shareholders has been set as August 26, 2025, subject to shareholder and regulatory approvals.
This is the bank’s 4th bonus issue since 2002 and the first in 7 years. The earlier issues were in 2002 (1:1), 2010 (2:5), and 2018 (1:10). Bonus shares are issued from reserves and increase the number of outstanding shares without impacting the company's market capitalisation.
Karur Vysya Bank also released its Q1 FY26 results. Net profit stood at ₹521.45 crore, marking a 14% year-on-year growth. Net interest income rose 5% to ₹1,079 crore, and operating profit was up 8% at ₹805.50 crore for the quarter.
The lender reported an improvement in asset quality. Net non-performing assets (NPAs) dropped to ₹170 crore, down over 42% year-on-year. The net NPA ratio stood at 0.19%, reflecting lower stressed assets in the loan book.
The bonus issue will increase the number of shares available in the market. While this does not change the overall valuation, it typically improves liquidity and accessibility for investors holding or planning to buy the stock.
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As of 9:23 AM on July 25, 2025, Karur Vysya Bank share price was trading at ₹268.50, a 0.81% decrease. Over the last 6 months, the share price has gained 19%, and over 790% in the past 5 years.
Karur Vysya Bank’s board approval for the 1:5 bonus issue follows a steady quarter and marks the lender’s return to issuing bonuses after seven years. The final allotment will depend on necessary approvals at the upcoming AGM.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 25, 2025, 9:27 AM IST
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