Karur Vysya Bank's Q2 FY25 results show strong financial performance and positive outlook

Karur Vysya Bank, a midcap private bank, has recently declared its financial results for the quarter ending September 2024. The bank has received a ‘Buy’ call from MarketsMOJO, indicating a positive outlook for the company.

The bank has shown a very positive financial performance in the quarter, with a score of 23 out of 25. This is a significant improvement from the previous quarter’s score of 25. The bank’s gross NPA (non-performing assets) has decreased to 1.10%, showing a consistent decline in the last five quarters. This indicates that the proportion of stressed loans given by the bank is also decreasing.

Karur Vysya Bank has also shown a strong operating cash flow, with the highest amount of Rs 2,954.06 crore generated in the last three years. The bank’s interest earned has also increased each quarter in the last five quarters, indicating a positive sales trend. The bank’s profit after tax (PAT) has also shown a consistent growth in the last five quarters, with the highest amount of Rs 473.60 crore in the September 2024 quarter.

The bank’s net NPA has also decreased to 0.28%, showing a decline in the proportion of stressed loans. The net interest income for the quarter is the highest in the last five quarters, indicating a strong performance in the bank’s core business. Karur Vysya Bank has also been distributing higher dividends to its shareholders, with the highest dividend per share of Rs 2.40 in the last five years.

However, the non-operating income for the quarter is 74.17% of the profit before tax, which is a cause for concern. This indicates that the bank’s income from non-business activities is high, which may not be a sustainable business model.

Overall, Karur Vysya Bank has shown a positive financial performance in the September 2024 quarter, with a strong outlook for the future. Investors can consider this midcap private bank for potential investment opportunities.