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Karur Vysya Bank Q1 Review - Incremental Stressed Asset Formation Under Control: ICICI Securities

Karur Vysya Bank Q1 Review - Incremental Stressed Asset Formation Under Control: ICICI Securities

<div class="paragraphs"><p>Indian rupee banknotes are counted in India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
Indian rupee banknotes are counted in India. (Photographer: Dhiraj Singh/Bloomberg)

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. sustained improving earnings trajectory in Q1 FY22 at Rs 1 billion (up 4% QoQ), despite higher provisions of Rs 2.6 billion versus Rs 0.7 billion in Q4 FY21, led by strong 14% YoY net interest income growth and cost normalisation.

Karur Vysya Bank's incremental stressed asset formation remained under control as reflected in negligible restructuring of only 7 baiss points and gross slippage ratio at 4% versus 7% in Q4 FY21.

Special mention account 30 plus pool is 1.9%; 95% collections throughout April-June 2021 and strong recovery in July 2021 reinforces our view that FY22E slippage ratio would be well within the guided range of 2%.

Click on the attachment to read the full report:

ICICI Securities Karur Vysya Bank Q1FY22 Result Update.pdf

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