Karur Vysya Bank Q3 Results Review - Strong, Medium-Term 1.5% RoA To Persist; Retaining A Buy: Anand Rathi

Anand Rathi Report

Boosted by strong Q3 profitability, Karur Vysya Bank Ltd.'s 1.65% return of assets (up 8 basis points q/q) was aided by a stable operating performance and modest provisions. Key positives were

1. strong growth in core retail and small and medium enterprises segments,

2. improved headline asset quality,

3. better net interest margin (up 25 basis points QAoQ) and

4. a strong balance sheet.

With credit growth likely in high teens and modest credit costs, earnings are expected to be strong.

We retain our 'Buy' rating, with a 12-month target price of Rs 230, valuing the stock at 1.4 times price/adjusted book value on the FY26E book.

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