Karur Vysya Bank jumps 5% on strong Q3 results: Net profit up 20%, asset quality improves

Karur Vysya Bank Ltd shares surged 5% intraday on Monday, January 20, following the announcement of robust financial results for the quarter ended December 31, 2024. The lender reported double-digit growth in net profit and total income, along with improved asset quality in Q3FY25.

The bank posted a 20.5% year-on-year (YoY) increase in net profit for the December quarter at ₹496.03 crore, compared to ₹411.63 crore in the same period last year.

Total income rose 18.3% YoY to ₹2,953.44 crore for the October-December 2024 quarter, up from ₹2,497.17 crore in the corresponding quarter of FY24. Interest income also showed strong growth, climbing 16.02% YoY to ₹2,486.01 crore from ₹2,139.4 crore in the year-ago period.

Operating profit (before provisions and contingencies) increased 20.6% YoY to ₹815.27 crore, compared to ₹675.9 crore in the same quarter last year.

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The lender also reported notable improvement in asset quality. Gross non-performing assets (NPA) fell to 0.83% in Q3FY25, down from 1.58% in the year-ago period and 1.1% in the previous quarter. Similarly, net NPA decreased to 0.2%, compared to 0.42% last year and 0.28% in Q2FY25.

Karur Vysya Bank’s Provision Coverage Ratio (PCR) stood at 96.87% as of December 31, 2024, as per RBI guidelines, up from 94.81% in the corresponding period of the previous year.

The strong financial performance drove the stock to an intraday high of ₹229.15 on the BSE. However, the shares pared some of their early gains, trading 3.14% higher at ₹224.9 apiece as of 3:20 pm on Monday.