Karur Vysya Bank â€” Is more steam left in the rally?

1 month ago

Deposits to dictate loan growth, going forward

March 28, 2024 / 09:58 AM IST

Karur Vysya Bank — Is more steam left in the rally?

Despite KVB's all out efforts, including adding manpower, to garner more deposits, the performance has been modest so far

PRO Only Highlights
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook

Highlights

Big out-performer in the banking spaceAdvances growth continues to impressDeposit challenges may cap growth in the futureInterest margin best so far, moderation aheadAsset quality holding up wellFees supportive, Cost-to-Income to moderateRoA peaked out

Karur Vysya Bank (KVB, CMP: Rs 185 Market Cap: Rs 14,879 crore, Rating: Overweight) had put up a strong performance in the past couple of years, matched by an equally impressive show by its stock – up 256 percent in the past two years