Karur Vysya Bank shares increase 5% as Q3 profit jumps 21%, asset quality improves

Karur Vysya Bank Q3 Results: Karur Vysya Bank share price rose 4.9 per cent to hit an intraday high of Rs 228.9 per share on the National Stock Exchange (NSE) on Monday, January 20, 2025. This surge in the bank’s share price came after it reported a healthy set of financial results for the December quarter (Q3FY25).

On Monday, Karur Vysya Bank said its net profit for Q3FY25 rose 20.5 per cent year-on-year (Y-o-Y) to Rs 496.03 crore. It was Rs 411.63 crore in the year-ago period. On a sequential basis, the profit grew 4.7 percent from Rs 472.6 crore.

Karur Vysya Bank’s net interest income (NII) – which is the amount obtained by subtracting interest expenses from interest income earned – grew 7.7 percent year-on-year to Rs 1,078.8 crore as compared to Rs 1,001.3 crore in Q3 FY24.

On a quarter-on-quarter basis, NII improved by 1.7 percent to Rs 1,059.95 crore.

Improved asset quality was the biggest boost to the stock.

Kaur Vysya Bank’s gross non-performing asset (GNPA) ratio increased from 1.1 percent quarter-on-quarter to 0.83 percent in Q3 FY25. Its GNPA ratio also improved from 0.28 percent quarter-on-quarter to 0.2 percent.

In absolute terms, GNPA declined to Rs 690.92 crore from Rs 885.61 crore in Q2FY25 and Rs 1,151.86 crore in Q3FY24. NNPA also declined to Rs 166.69 crore from Rs 219.22 crore quarter-on-quarter.

At 2:25 pm, Karur Vysya Bank share price rose 3 percent to Rs 224.8 per share as against a 0.6 percent rise in the benchmark Nifty 50 index. In its quarterly update on January 1, Karur Vysya Bank informed the stock exchanges that its deposits grew 15.75 per cent year-on-year to Rs 99,155 crore in the December quarter from Rs 85,665 crore in the year-ago quarter. Meanwhile, the bank’s loan book grew 14.9 percent to Rs 1.82 trillion as against Rs 1.58 trillion last year.

The provision coverage ratio stood at 96.87 percent as of December 31, 2024, as against 94.81 percent in the same period last year. On Friday, January 17, 2025, Crisil rating agency reaffirmed its rating on the lender’s Rs 5,000-crore certificate of deposit programme as ‘Crisil A1+’.