Are Karur Vysya Bank latest results good or bad?

Karur Vysya Bank has reported its financial results for the quarter ending March 2025, highlighting several operational trends. The bank has achieved a record low in gross non-performing assets (NPA) at 0.76%, continuing a downward trend observed over the last five quarters. The net NPA also reflects a positive position at 0.20%, indicating a reduction in stressed loans.
In terms of financial performance, the bank's net interest income reached Rs 1,089.26 crore, marking the highest figure in five quarters, which suggests consistent growth in interest earnings. Interest earned peaked at Rs 2,515.93 crore, reflecting a positive sales trend, although the quarter-on-quarter growth rate for interest earned was 1.1%, a decline from the previous quarter's 4.39%.

Profit after tax (PAT) for the quarter stood at Rs 513.36 crore, with a quarter-on-quarter growth of 3.49%, which is lower than the previous quarter's growth rate. Profit before tax (PBT) has shown a notable increase of 21.9% compared to the average of the prior four quarters, now reported at Rs 164.24 crore. Earnings per share (EPS) have also risen to Rs 6.38, indicating enhanced profitability for shareholders.

However, it is noteworthy that non-operating income constitutes a significant portion of PBT at 75.62%, which raises questions about the sustainability of the bank's business model. The capital adequacy ratio (CAR) is reported at 18.17%, suggesting an improving capital base against risk assets.

Overall, the company saw an adjustment in its evaluation, reflecting the mixed operational performance and financial metrics reported for the quarter.