In a robust mid-day trading session on October 17, Karur Vysya Bank witnessed a remarkable upswing, with its shares soaring by more than 7% on the NSE, reaching Rs 147.30. The day began on a positive note, with the stock opening at Rs 138.55, a 0.6% increase from the previous day’s close. This surge came on the heels of the bank’s announcement of an impressive 51% year-on-year rise in net profit for Q2FY24.
In its regulatory filing, Karur Vysya Bank revealed a substantial net profit of Rs 378 crore for the quarter ending September 2023, showcasing a remarkable 51% increase compared to Rs 250 crore in the previous fiscal. The bank’s operating profit also experienced a robust growth of 12% year-on-year, reaching Rs 638 crore from Rs 572 crore for the corresponding period.
Furthermore, the bank reported a net interest income of Rs 915 crore for Q2FY24, marking an 11.45% increase from the previous fiscal. The net interest margin for the same period stood at 4.07%, slightly lower than the 4.10% reported in the previous fiscal.
Analysts at HDFC Securities expressed confidence in Karur Vysya Bank’s future prospects, citing the bank’s well-planned strategies aimed at achieving a targeted Return on Assets (RoA) of nearly 1.5%. These strategies include accelerated efforts in optimizing its product mix, enhancing cross-sell outcomes, and productivity gains. Additionally, the bank showcased improved asset quality, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) standing at 1.7% and 0.5%, respectively, for Q2FY24, in comparison to 2% and 0.6% in Q1FY24.
As of 2:17 PM, Karur Vysya Bank’s shares continued to surge, trading at ₹144.00, reflecting an impressive 4.65% increase. This positive momentum signifies the market’s confidence in the bank’s strong financial performance and strategic initiatives.
