The Karur Vysya Bank (KARURVYSYA) Q2 24/25 earnings summary

Executive summary

• Achieved strong Q2 FY25 performance with total business at ₹1,76,138 crore, 15% year-over-year growth in advances and deposits, and steady profitability.

• Net profit rose 25% year-over-year to ₹47,360 lakhs, with operating profit up 28% year-over-year.

• Maintained strong asset quality with GNPA at 1.10% and NNPA at 0.28%.

• Digital banking initiatives drove a 142% year-over-year increase in UPI transactions.

• Unaudited financial results for the quarter and half year ended September 30, 2024, were approved by the Board and subjected to a limited review with an unqualified report from joint statutory auditors.

Financial highlights

• Net Interest Margin (NIM) for Q2 FY25 at 4.11%; Net Interest Income increased 16% year-over-year to ₹1,060 crore.

• Return on Assets (ROA) for Q2 FY25 at 1.72%; Return on Equity (ROE) at 17.36%.

• Cost-to-income ratio improved to 46.72%, with efforts to keep it within 50%.

• Provision Coverage Ratio (PCR) reached 96.09%.

• Gross NPA reduced to 1.1%; net NPA at 0.28%.

Outlook and guidance

• NIM expected to be around 4% in the next quarter, with a moderate rise in deposit costs.

• Confident in maintaining ROA above 1.65% and gross slippage ratio below 1%.

• RAM portfolio growth guidance at 18-20% annually; overall deposit growth guided at 14%.

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

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