KARURVYSYA

Q4 Results: Stock Surges on 25% Growth in Core Earnings; Asset Quality Remains Resilient

Vysya Bank’s earnings performance was supported by a strong rise in non-interest income, even as provisions at the end of the quarter more than doubled sequentially to ₹257.6 crore from ₹104.8 crore in December. Shares of climbed nearly 3% on Thursday, May 7, after the private lender posted March quarter results that reflected solid year-on-year growth. The bank reported a 41.2% increase in net profit to ₹725 crore compared to the corresponding quarter last year. Earnings growth was further driven by a 21% rise in other income. The lender’s asset quality stayed broadly steady during the quarter. Gross NPA stood at 0.75% in March versus 0.71% in December, while Net NPA remained unchanged at 0.19% sequentially. In absolute terms, Gross NPA increased to ₹744 crore from ₹687 crore in December, whereas Net NPA edged up to ₹187 crore from ₹183 crore quarter-on-quarter. Meanwhile, provisions for the quarter rose sharply to ₹257.6 crore, compared to ₹104.8 crore in the previous quarter. Following the earnings announcement, shares of Karur Vysya Bank ended 5.5% higher at ₹321.6. The stock is trading close to its 52-week peak of ₹343 and has rallied 23% over the past month. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.