ICICI Securities: Karur Vysya Bank - Collection Trend Encouraging; Credit Cost To Remain Elevated   
A cashier counts Indian one hundred-rupee banknotes at an Oriental Bank of Commerce branch in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

ICICI Securities: Karur Vysya Bank - Collection Trend Encouraging; Credit Cost To Remain Elevated   

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Karur Vysya Bank Ltd.’s Q2 FY21 earnings further improved to Rs 1.15 billion, taking multi-quarter high return on asset to 0.63%, driven by strong net interest income growth at 7% QoQ and tight control on cost (up 5% QoQ).

Management’s prudent approach in utilising strong operating performance to beef up Covid-19 related contingency buffer (approximately 45 basis points of loans) and improve coverage ratio to 64% would ensure lower earnings volatility going ahead.

Click on the attachment to read the full report:

ICICI Securities Karur Vysya Bank Q2FY21 Results Update.pdf

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