Karur Vysya Bank rises 2% as Q2 advances grow by 15.3%

Karur Vysya Bank jumped nearly 2 percent in the early trade on October 3 after the private lender reported a robust growth of 15.3 percent in advances in the second quarter of the current financial year.

In a business update, the bank said advances for the September quarter were at Rs 70,446 crore, growing 15.3 percent over the year-ago period. Deposits increased by 13.2 percent to Rs 83,068 crore during the same period, while CASA grew by 3.4 percent YoY to Rs 26,795 crore.

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In the June quarter, the bank reported a 57 percent rise in net profit at Rs 359 crore from Rs 229 crore in the same period of FY23.

The operating profit for the quarter rose 36 percent to Rs 648 crore. Its net interest income increased 20 percent to Rs 897 crore from Rs 746 crore in the corresponding quarter of the previous year.

The bank’s gross non-performing assets in Q1 improved by 329 basis points (bps) and stood at 1.99 percent of gross advances compared with 5.28 percent in the year-ago period.

Net non-performing assets were below 1 percent and stood at 0.59 percent of net advances, compared to 1.93 percent a year ago. The lender’s provision coverage ratio (PCR) was 93.41 percent against 82.74 percent a year ago.

At 10.33 am, the stock was trading at Rs 135.97 on NSE, up 1.77 percent from the previous year.

Brokerage firm ICICI Securities is bullish on Karur Vysya Bank and has a “buy” rating on the stock with a target price of Rs 165.

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