Karur Vysya Bank Q3 Results Review - Higher Write-Offs Led To Multi-Quarter Low NNPL: ICICI Securities

Bank’s Q3 was characterised by its aggressive approach in cleaning up balance sheet, sustained improvement in core performance.

<div class="paragraphs"><p>Karur Vysya Bank exterior. (Source: Bank's website)</p></div>
Karur Vysya Bank exterior. (Source: Bank's website)

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

ICICI Securities Report

Karur Vysya Bank Ltd.’s Q3 FY23 financial performance was characterised by its aggressive approach in cleaning up the balance sheet (written-off loans amounting to Rs 7.5 billion) and sustained improvement in core operating performance. Return on asset at 1.3% during Q3 FY23 is ahead of guidance – earlier the management was expecting 1.2% RoA by Q4 FY23.

Lower tax (~10%) and higher recovery (of Rs 0.85 billion) from written-off accounts supported earnings. Net non-performing loan ratio settled at a multi-quarter low of 0.9% during Q3 FY23 versus management’s target of bringing it down to less than 1% by March 2023.

While Karur Vysya Bank wrote off loans amounting to Rs 7.5 billion during Q3 FY23, it continued to maintain a strong provision coverage ratio at 67%. This resulted in higher provisioning at Rs 3.6 billion (more than 2% credit cost).

Click on the attachment to read the full report:

ICICI Securities Karur Vysya Bank Q3FY23 Results.pdf
Axis Bank Q3 Review - Operating Metrics Sustain; Rise In Credit Cost Offset By Trading Gains: ICICI Securities


This report is authored by an external party. BQ Prime 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 BQ Prime.

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