Karur Vysya Bank Q2 - Core Performance Steady; Incremental Stressed Asset Formation Lower: ICICI Securities
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ICICI Securities Report
Karur Vysya Bank Ltd. sustained improving earning trajectory, recorded highest ever profits since Q1 FY18, at Rs 1.65 billion (up 52% QoQ), despite one-off employee related expense of Rs 0.26 billion.
Strong net interest income growth at 7% QoQ driven by 19 basis points QoQ margin expansion and lower provision of Rs 1.6 billion (1.3% annualised) versus Rs 2.6 billion in Q1 FY22 supported earnings.
Fresh slippages of Rs 1.6 billion with higher recoveries at Rs 3.6 billion, special mention account 30 plus pool at 1.86%, 97% plus collections in September 2021 summarise the asset quality performance of Karur Vysya Bank during Q2 FY22.
Taking cognisance of improved economic outlook and recent delinquency/recovery trend, management maintained its full year slippage guidance of 2%.
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