The Karur Vysya Bank (KARURVYSYA) Q3 24/25 earnings summary

Executive summary

• Achieved strong business growth with total business reaching INR 181,993 crores as of December 31, 2024, advances up 14% year-over-year, and deposits up 16%.

• Net profit for Q3 FY25 rose 20% year-over-year to ₹496 crore (₹49,603 lakhs), with operating profit at ₹815 crore.

• Maintained high asset quality with GNPA at 0.83% and NNPA at 0.20% as of December 2024.

• Digital transactions grew 136% year-over-year, now comprising 96% of total transactions.

• Unaudited financial results for the quarter and nine months ended December 31, 2024, were approved by the Board and subjected to a limited review with an unqualified report.

Financial highlights

• Net Interest Margin (NIM) for Q3 FY25 at 4.03%, with Net Interest Income up 8% year-over-year to ₹1,079 crore.

• Return on Assets (ROA) for Q3 FY25 at 1.74%, and Return on Equity (ROE) at 17.42%.

• Cost-to-income ratio improved to 47.27% in Q3 FY25 from 50.27% in Q3 FY24.

• Provision Coverage Ratio (PCR) at 96.87%, up 206 bps year-over-year.

• EPS for Q3 FY25 at ₹6.16, up from ₹5.13 in Q3 FY24.

Outlook and guidance

• Guidance for Q4: credit and deposit growth above 14%, NIM at 3.85%, credit cost at 0.75%, GNPA below 2%, net NPA below 1%, ROA above 1.65%, and cost-to-income below 50%.

• Focus on expanding digital banking, partnerships, and maintaining disciplined risk management.

• Management states the impact of the new investment accounting policy is not material for the current quarter.