Karur Vysya Bank shares rally 6% after Q2 profit jumps 37% YoY

Total business increased 17.96% YoY and 5.48% sequentially to Rs 2,39,712 crore.Deposits grew 15.96% YoY and 4.52% quarter-on-quarter (QoQ) to Rs 1,28,123 crore, while advances rose 20.35% YoY and 6.60% QoQ to Rs 1,11,589 crore.Live EventsAdvances under the retail, agriculture and micro, small and medium enterprises (RAM) segment grew 20% YoY and 6% sequentially. The bank’s current account and savings account (CASA) deposits increased 15.41% YoY and 4.40% QoQ, taking the CASA ratio to 27.52%.The lender’s net interest margin (NIM) stood at 4.34%, improving 28 basis points year-on-year.

Commission and fee income increased 11% YoY, while the cost-to-income ratio was 40.53%.On the asset quality front, gross non-performing assets (GNPA) stood at 0.69%, while net non-performing assets (NNPA) were at 0.18%. Return on assets (ROA) came in at 2.10% for the quarter, and return on equity (ROE) stood at 20.47%.He added that the bank’s total business reached Rs 2,39,712 crore, reflecting year-on-year growth of around 18% and sequential growth of approximately 5%.

Advances stood at Rs 1,11,589 crore, while deposits reached Rs 1,28,123 crore. The bank also recorded its highest-ever quarterly profit of Rs 788 crore. The management said the lender would continue to focus on calibrated growth, operational efficiency, customer centricity and disciplined risk management, while remaining mindful of the evolving operating environment.Share Price and Technical IndicatorsKarur Vysya Bank shares have gained around 60% over the past year, taking the bank’s market capitalisation to approximately Rs 34,123 crore.

The stock touched a fresh 52-week high of Rs 365.90 during Friday’s trading session.According to Trendlyne’s technical data, the stock is trading above all eight simple moving averages (SMAs), indicating a strong technical trend.Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution.

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