Karur Vysya Bank Q2 Results Review - Seems On Track To Maintain Healthy RoA: Yes Securities

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Yes Securities Report

We maintain ‘Buy' rating on Karur Vysya Bank Ltd. with a revised price target of Rs 270.

Asset Quality – Annualised gross slippage ratio continues to be maintained below 1% albeit at a level slightly higher than FY24:

Gross NPA additions amounted to Rs. 1.81 billion for Q2 FY25, translating to an annualized slippage ratio of 0.9% for the quarter, stable on sequential basis.

Gross slippage ratio had amounted to 0.7% in FY24. Management stated that slippages would be contained below 1% going forward as well.

Recoveries and upgrades for Q2 FY25 were at Rs 1.0 billion as compared to Rs 0.9 billion in Q1 FY25. The recoveries from written off accounts were healthy at Rs 1.81 billion.

Provisions were Rs 1.8 billion, up by 35% QoQ an 42% YoY, translating to calculated annualised credit cost of 92 bps. The bank has made a customary contingent provision of Rs 250 million in Q2 FY25.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. 

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.