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

Executive summary

• Achieved 15% year-over-year growth in both advances and deposits for Q2 FY25, with total business reaching ₹1,76,138 crore as of September 30, 2024.

• Net profit rose 25% year-over-year to ₹47,360 lakhs (₹473 crore), with operating profit up 28% year-over-year.

• Maintained strong asset quality with gross NPA at 1.10% and net NPA 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%; H1 FY25 at 4.12%.

• Net profit for Q2 FY25 was ₹47,360 lakhs, up from ₹37,845 lakhs in Q2 FY24; half-year net profit reached ₹93,225 lakhs.

• Net Interest Income increased 16% year-over-year to ₹1,060 crore; other income grew 39% year-over-year.

• Cost-to-income ratio improved to 46.72% from 49.14% year-over-year.

• Provision Coverage Ratio (PCR) reached 96.09%.

Outlook and guidance

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

• Confident of maintaining ROA above 1.65% and gross NPA below 2%.

• 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.

• No forward-looking guidance or projections were provided in statutory disclosures.