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Karur Vysya Bank Q4 Results Review: Investment Thesis Intact Despite Weak NIM Guidance, Says ICICI Securities

ICICI Securities believes Karur Vysya Bank should sustain the highest RoA/RoE within its peers , hence maintains 'Buy ' rating on the stock, sees 33% upside.

<div class="paragraphs"><p>&nbsp;</p><p>(Photo source: Bank's website)</p></div>
 

(Photo source: Bank's website)

In the current cycle, Karur Vysya Bank has built strong resilience in growth (risk assessment model growth at ~20% YoY), opex (frontloaded investments in manpower, tech) and asset quality (one of the lowest net non-performing asset). While NIM pressure is inevitable due to ~52% share of EBLR loans, we do not envisage the NIM outcomes at Karur Vysya Bank to differ starkly from peers.
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