Karur Vysya Bank - To Sustain Leadership On RoA/RoE Within Mid, Small Private Banks Space: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We hosted Karur Vysya Bank Ltd. for overseas NDR. The investors seem to have acknowledged the remarkable transformational journey of Karur Vysya Bank under the current management with steady growth and superior RoA. The management explained the hard work behind the numbers, suggesting that superior performance / delivery on net interest margin, growth, asset quality and return on asset are structural and outcome of the multiple initiatives undertaken. The bank acknowledged headwinds on systemic deposits growth, NIM and credit costs but explained the steps it is taking to mitigate the same. The bank has one of the lowest LDRs (83%) and one of the highest LCRs (185%), and thus, should sustain ~15% CAGR in loan for FY24–26E. Karur Vysya Bank’s all-inclusive special mention account 1+2 (less than 0.5%) and net non-performing asset (<0.4%), being amongst the lowest, alongside its limited (<3%) exposure to unsecured retail, nourishes our confidence of benign credit costs..Our estimates are unchanged. Overall, we expect Karur Vysya Bank to sustain its leadership on RoA/RoE within mid and small private banks space. Maintain Buy with an unchanged target price of Rs 270, valuing the stock at ~1.6 times FY26E adjusted book value. Key risk is slower-than-expected deposits growth impacting growth and NIM..Click on the attachment to read the full report:.AU Small Finance Bank - On A Long Growth Runway: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Karur Vysya Bank - To Sustain Leadership On RoA/RoE Within Mid, Small Private Banks Space: ICICI Securities

The brokerage maintains 'Buy' rating on the stock with an unchanged target price of Rs 270, valuing the stock at ~1.6 times FY26E adjusted book value.

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Karur Vysya Bank - To Sustain Leadership On RoA/RoE Within Mid, Small Private Banks Space: ICICI Securities

The brokerage maintains 'Buy' rating on the stock with an unchanged target price of Rs 270, valuing the stock at ~1.6 times FY26E adjusted book value.

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