Karur Vysya Bank Ltd
NSE:KARURVYSYA
Karur Vysya Bank Ltd
Karur Vysya Bank Ltd., founded in 1916 in Tamil Nadu, India, has carved a niche for itself in the banking sector through its deep-rooted community banking ethos combined with forward-looking strategies. Originally established by M.A. Venkatarama Chettiar and Athi Krishna Chettiar, the bank set out with a mission to cater to the local banking needs of small and medium enterprises (SMEs). Over the years, it evolved into a full-service financial institution that serves a diverse client base across India. The bank’s operations span various segments, including retail, corporate, and agricultural banking, characterized by personal approach and regional familiarity that fortify customer trust and loyalty.
The craft of making money for Karur Vysya Bank lies in its comprehensive suite of financial services. It generates revenue through traditional banking services such as accepting deposits and lending, where the spread between the interest paid on deposits and charged on loans forms the core income. Additionally, it has diversified into non-interest income streams, including service charges, fees from banking operations, and commission from distribution of third-party products like insurance and mutual funds. High standards of corporate governance and adoption of technology-driven solutions further bolster its operational efficiency, enabling the bank to cater to its clients while maintaining a robust bottom line. Through a blend of innovation and tradition, Karur Vysya Bank has successfully navigated the dynamic banking landscape, continuously aligning its offerings to the evolving needs of its clientele.
Karur Vysya Bank Ltd., founded in 1916 in Tamil Nadu, India, has carved a niche for itself in the banking sector through its deep-rooted community banking ethos combined with forward-looking strategies. Originally established by M.A. Venkatarama Chettiar and Athi Krishna Chettiar, the bank set out with a mission to cater to the local banking needs of small and medium enterprises (SMEs). Over the years, it evolved into a full-service financial institution that serves a diverse client base across India. The bank’s operations span various segments, including retail, corporate, and agricultural banking, characterized by personal approach and regional familiarity that fortify customer trust and loyalty.
The craft of making money for Karur Vysya Bank lies in its comprehensive suite of financial services. It generates revenue through traditional banking services such as accepting deposits and lending, where the spread between the interest paid on deposits and charged on loans forms the core income. Additionally, it has diversified into non-interest income streams, including service charges, fees from banking operations, and commission from distribution of third-party products like insurance and mutual funds. High standards of corporate governance and adoption of technology-driven solutions further bolster its operational efficiency, enabling the bank to cater to its clients while maintaining a robust bottom line. Through a blend of innovation and tradition, Karur Vysya Bank has successfully navigated the dynamic banking landscape, continuously aligning its offerings to the evolving needs of its clientele.
Strong Growth: Total business reached INR 2,11,647 crores, showing 4% quarter-on-quarter and 16% year-on-year growth.
Profitability: Net profit jumped 20% quarter-on-quarter and 25% year-on-year to INR 690 crores.
Margin Expansion: Net interest margin rose to 3.99%, a 22 basis point increase from last quarter, beating previous guidance.
Asset Quality: Gross NPA improved to 0.71% and net NPA remained stable at 0.19%. Slippages were low at 0.63% annualized.
Guidance Maintained: Management reaffirmed credit growth of 2% above industry, NIM of 3.9–3.95%, ROA above 1.85%, and gross/net NPAs below 1.5%/1%.
Cost Control: Cost-to-income ratio stayed at 43.98%, well below the 50% target.
Leadership Extension: CEO Ramesh Babu confirmed his term has been extended by 2 years.
No Major One-Offs: This quarter’s results were described as fully organic, with no significant one-off items.
