The Karur Vysya Bank (KARURVYSYA) Q1 24/25 earnings summary

Executive summary

• Senior management changes included induction of a new executive director and head of liability business, strengthening the leadership team.

• Achieved 15% year-over-year growth in total business, with advances up 16% and deposits up 14% as of June 2024.

• Net profit rose 28% year-over-year to ₹459 crore, with operating profit up 15% and net interest income up 14%.

• Unaudited financial results for the quarter ended 30 June 2024 were approved by the Board on 18 July 2024.

• Digital banking initiatives drove a 138% year-over-year increase in UPI transactions.

Financial highlights

• Total business reached INR 1,70,059 crore as of June 30, 2024, with 4% QOQ growth in advances (INR 77,710 crore) and deposits (INR 92,349 crore).

• Net interest margin stood at 4.13%, with return on assets at 1.7% and return on equity at 17.33%.

• Gross NPA reduced to 1.32%, net NPA to 0.38%, and provision coverage ratio reached 94.91%.

• Cost-to-income ratio improved to 47.2% from 51.62% year-over-year.

• EPS for the quarter was ₹5.70, up from ₹4.47 a year ago.

Outlook and guidance

• NIM expected to remain above 4% in the next quarter; ROA to be maintained above 1.65%.

• Credit cost for the year estimated at 75 basis points; gross slippages to be kept below 1%.

• Focus remains on responsible book growth, digital expansion, and maintaining high asset quality.

• Continued investment in ESG initiatives and digital partnerships to drive future growth.

• Planned addition of 100 branches this year, with a mix of light and regular branches.