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

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.

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