Karur Vysya Bank Ltd., incorporated in the year 1916, is a banking company (having a market cap of Rs 4492.19 Crore).
Karur Vysya Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 1595.93 Crore, up 1.93 % from last quarter Total Income of Rs 1565.78 Crore and down -5.75 % from last year same quarter Total Income of Rs 1693.23 Crore. The bank reported net profit after tax of Rs 108.87 Crore in latest quarter.
Investment Rationale
The brokerage believes KVB’s upgraded digital platform, cost optimisation drive and gradual normalisation of credit cost will revive RoA to ~1% by FY23E (0.86% in Q1FY22). Maintain BUY with TP of Rs70. Key risks – A) Stress unfolding higher than anticipation, B) delay in credit growth recovery.
Promoter/FII Holdings
Promoters held 2.12 per cent stake in the company as of 30-Sep-2021, while FIIs owned 18.92 per cent, DIIs 19.69 per cent.
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