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