Karur Vysya Bank Reports Strong Financial Results for Q1 FY25, Receives 'Buy' Call from MarketsMOJO

Karur Vysya Bank has recently declared its financial results for the quarter ended June 2024, and the numbers are looking very positive. The bank’s stock has been given a ‘Buy’ call by MarketsMOJO, indicating a positive outlook for investors.

In the last three months, the bank’s financial score has improved from 12 to 23, showcasing a significant growth in its performance. The bank’s Profit Before Tax (PBT) has seen a remarkable increase of 103.5% from the average PBT of the previous four quarters, standing at Rs 224.56 crore. This trend is expected to continue in the near future.

One of the key factors contributing to the bank’s success is its low Gross Non-Performing Assets (NPA) ratio, which stands at 1.32%. This indicates that the proportion of stressed loans given by the bank is decreasing, leading to a healthier loan portfolio. Additionally, the bank’s Interest Earned has also seen a consistent growth in the last five quarters, reaching its highest at Rs 2,284.53 crore. This shows a positive trend in the bank’s sales.

The bank’s Profit After Tax (PAT) has also seen a significant increase, reaching its highest at Rs 458.65 crore in the last five quarters. This showcases the bank’s ability to generate higher profits for its shareholders. Moreover, the bank’s Net NPA ratio has also decreased to 0.38%, indicating a decrease in the proportion of stressed loans.

Karur Vysya Bank’s core business income, as represented by its Net Interest Income, has also seen a consistent growth in the last five quarters, reaching its highest at Rs 1,024.35 crore. This shows the bank’s strong performance in its core operations. The bank’s Operating Profit (PBDIT) has also seen a positive trend, reaching its highest at Rs 357.50 crore in the last five quarters.

The bank’s Earnings per Share (EPS) have also increased to its highest at Rs 5.70 in the last five quarters, indicating a higher profitability and value creation for its shareholders. Additionally, the bank’s cash and cash equivalents have also seen a significant increase, reaching its highest at Rs 5,587.93 crore in the last six half-yearly periods. This shows an improvement in the bank’s short-term liquidity.

However, one area of concern for the bank is its high Non-Operating Income, which accounts for 63.36% of its Profit Before Tax. This indicates a high reliance on non-business activities, which may not be a sustainable business model in the long run.

Overall, Karur Vysya Bank’s financial results for the quarter ended June 2024 have been very positive, showcasing a strong performance and growth potential. With a ‘Buy’ call from MarketsMOJO, the bank’s stock is expected to attract more investors and continue its upward trend.