Karur Vysya Bank bonus shares today: How the move will impact KVB stock price and holdings
This marks the fifth bonus issue in KVB’s history and its first since 2018, when the stock turned ex-date for a 1:10 bonus on August 18. The bank has also issued bonus shares in 2010, 2006 and 2002.
- Aug 26, 2025,
- Updated Aug 26, 2025 8:51 AM IST
Shares of Tamil Nadu-based Karur Vysya Bank (KVB) are in focus as the lender turns ex-date for its bonus issue on Tuesday. The stock had closed at Rs 264 apiece on Monday and will trade ex-bonus in the ratio of 1:5 — meaning investors will receive one additional share for every five fully paid-up equity shares of Rs 2 each held. The record date to determine eligible shareholders has been fixed for Wednesday, August 27.
This marks the fifth bonus issue in KVB’s history and its first since 2018, when the stock turned ex-date for a 1:10 bonus on August 18. The bank has also issued bonus shares in 2010, 2006 and 2002.
In a bonus issue, shareholders are rewarded with free additional shares in proportion to their holdings, unlike a stock split where existing shares are simply divided into smaller denominations without issuing new ones. For KVB, the issue will increase the number of outstanding equity shares while reducing free reserves and surplus, leading to lower earnings per share (EPS) and a price adjustment.
Such adjustments are standard. Take Ashok Leyland’s recent example: the automaker turned ex-bonus in the 1:1 ratio in July. The stock, which closed at Rs 250.85 before the ex-date, opened at Rs 125.70 the next day — an apparent 50 per cent drop on some trading apps, though investors effectively doubled their holdings.
KVB currently operates through 891 branches and over 2,226 ATMs and cash recyclers. As of June 30, its total business stood at Rs 1,96,024 crore, including deposits of Rs 1,06,650 crore and advances worth Rs 89,374 crore. The bank’s asset quality remains strong with net NPAs at just 0.19 per cent.
Notably, HDFC Bank is also turning ex-date today for its first-ever 1:1 bonus issue, making it another key corporate action in the banking space.
On the earnings front, Karur Vysya Bank reported results for the June quarter that were largely in line with estimates. Analysts highlighted strong operating performance backed by healthy fee income and stable margins. According to HDFC Institutional Equities, the bank delivered 16 per cent year-on-year loan growth, led by retail, agri and MSME segments, while deliberately shrinking its corporate loan book to shed margin-dilutive businesses.
“Deposit growth matched loan growth at 16 per cent YoY, with CASA ratio at 27.5 per cent. We tweak our FY26E/FY27E forecasts, factoring in an 18bps NIM compression and softer credit costs of 70bps for FY26E. We remain constructive on KVB given its consistent operating performance, granular portfolio and strong asset quality,” the brokerage said.
Shares of Tamil Nadu-based Karur Vysya Bank (KVB) are in focus as the lender turns ex-date for its bonus issue on Tuesday. The stock had closed at Rs 264 apiece on Monday and will trade ex-bonus in the ratio of 1:5 — meaning investors will receive one additional share for every five fully paid-up equity shares of Rs 2 each held. The record date to determine eligible shareholders has been fixed for Wednesday, August 27.
This marks the fifth bonus issue in KVB’s history and its first since 2018, when the stock turned ex-date for a 1:10 bonus on August 18. The bank has also issued bonus shares in 2010, 2006 and 2002.
In a bonus issue, shareholders are rewarded with free additional shares in proportion to their holdings, unlike a stock split where existing shares are simply divided into smaller denominations without issuing new ones. For KVB, the issue will increase the number of outstanding equity shares while reducing free reserves and surplus, leading to lower earnings per share (EPS) and a price adjustment.
Such adjustments are standard. Take Ashok Leyland’s recent example: the automaker turned ex-bonus in the 1:1 ratio in July. The stock, which closed at Rs 250.85 before the ex-date, opened at Rs 125.70 the next day — an apparent 50 per cent drop on some trading apps, though investors effectively doubled their holdings.
KVB currently operates through 891 branches and over 2,226 ATMs and cash recyclers. As of June 30, its total business stood at Rs 1,96,024 crore, including deposits of Rs 1,06,650 crore and advances worth Rs 89,374 crore. The bank’s asset quality remains strong with net NPAs at just 0.19 per cent.
Notably, HDFC Bank is also turning ex-date today for its first-ever 1:1 bonus issue, making it another key corporate action in the banking space.
On the earnings front, Karur Vysya Bank reported results for the June quarter that were largely in line with estimates. Analysts highlighted strong operating performance backed by healthy fee income and stable margins. According to HDFC Institutional Equities, the bank delivered 16 per cent year-on-year loan growth, led by retail, agri and MSME segments, while deliberately shrinking its corporate loan book to shed margin-dilutive businesses.
“Deposit growth matched loan growth at 16 per cent YoY, with CASA ratio at 27.5 per cent. We tweak our FY26E/FY27E forecasts, factoring in an 18bps NIM compression and softer credit costs of 70bps for FY26E. We remain constructive on KVB given its consistent operating performance, granular portfolio and strong asset quality,” the brokerage said.