Karur Vysya Bank shares rise 5% as Q3 profit up 21%, asset quality improves

Karur Vysya share price: Karur Vysya Bank said its net profit for Q3FY25 increased 20.5 per cent year-on-year (Y-o-Y) to Rs 496.03 crore

Karur Vysya Bank Q3 results: Karur Vysya Bank share price zoomed 4.9 per cent intraday to hit a high of Rs 228.9 per share on the National Stock Exchange (NSE) on Monday, January 20, 2025. This surge in the bank’s share price came after the lender reported a healthy set of financial results for the December quarter (Q3FY25).

 

On Monday, Karur Vysya Bank said its net profit for Q3FY25 increased 20.5 per cent year-on-year (Y-o-Y) to Rs 496.03 crore. It was Rs 411.63 crore in the year-ago period. On a sequential basis, profit climbed 4.7 per cent from Rs 472.6 crore.

 

Karur Vysya Bank’s net interest income (NII) – which is the interest income earned less interest expended – improved 7.7 per cent Y-o-Y to Rs 1,078.8 crore as against Rs 1,001.3 crore in Q3FY24.

 

On a quarter-on-quarter basis, the NII improved by 1.7 per cent over Rs 1,059.95 crore.

 

The major boost to the stock came from an improved asset quality.

 

Karur Vysya Bank’s Q3FY25 gross non-performing asset (GNPA) ratio improved to 0.83 per cent from 1.1 per cent Q-o-Q. Its NNPA ratio, too, improved to 0.2 per cent from 0.28 per cent Q-o-Q.

 

In absolute terms, GNPAs fell to Rs 690.92 crore from Rs 885.61 crore reported in Q2FY25 and Rs 1,151.86 crore in Q3FY24.

 

NNPAs, too, declined to Rs 166.69 crore, down from Rs 219.22 crore Q-o-Q.

 

At 2:25 PM, Karur Vysya Bank share price was up 3 per cent at Rs 224.8 per share as against a 0.6 per cent rise in the benchmark Nifty50 index.

 

In its quarterly update, on January 1, Karur Vysya Bank informed the stock exchanges that its deposits grew 15.75 per cent Y-o-Y to Rs 99,155 crore in the December quarter, up from Rs 85,665 crore in the year-ago quarter.

 

The Bank’s loan book, meanwhile, was up 14.9 per cent to Rs 1.82 trillion as against Rs 1.58 trillion Y-o-Y.

 

Provision Coverage Ratio, as on December 31, 2024, was 96.87 per cent compared with 94.81 per cent for the corresponding period of previous year.

 

On Friday, January 17, 2025, CRISIL Rating agency reaffirmed its rating on the lender’s Certificate of Deposits Programme worth Rs 5,000 crore as ‘CRISIL A1+’.