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Karur Vysya Bank surges 7% post record Q2 profit; stock hits 6-year high

The bank reported its highest-ever quarterly profit of Rs 378 crore for the quarter ended September 2023, up 51 per cent from a year ago period.

Karur Vysya Bank

SI Reporter Mumbai

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Shares of Karur Vysya Bank rallied 7 per cent to a high of Rs 147.20 in intra-day trade on the BSE after the bank reported it’s highest-ever quarter net profit in Q2FY24. In the process, the stock also registered a fresh 6-year high.

At 12:25 PM, the stock quoted with a gain of 6 per cent at Rs 146, on volume of around 5.01 lakh shares on the BSE. Meanwhile, the S&P BSE Sensex was up 0.5 per cent at 66,480.

Karur Vysya Bank (KVB) on Monday reported a 51 per cent growth in net profit at Rs 378 crore for the quarter ended September 2023, when compared with Rs 250 crore in the corresponding quarter a year ago. 

The bank's operating profit increased by 12 per cent year-on-year (YoY) to Rs 638 crore in Q2FY24 from Rs 572 crore in Q2FY23. Net interest income was up 11.5 per cent YoY at Rs 915 crore.

Further, the bank's gross non-performing assets (GNPA) improved significantly by 229 basis points (bps) and stood at 1.7 per cent of gross advances or Rs 1,219 crore, down from 4.02 per cent or Rs 2,457 crore in the year ago period.

The bank also achieved a historical milestone in the form of Rs 1.5 lakh crore (trillion) business in the September quarter.

Commenting on the same, Ramesh Babu B, managing director and chief executive officer of the bank said, "I am pleased to mention that our bank had crossed the historical milestone of total business of Rs 1.5 trillion during the last quarter and reached a level of Rs 1.53 trillion. We have delivered yet another quarter of strong top line and bottom line performance with highest-ever quarterly net profit with consistent performance in terms of growth, profitability, and asset quality."

Further the bank announced a rejig in senior management personnel’s. President & Chief Operating Officer of the Bank, J Natarajan was re-designated as President and he shall be responsible for leading the business verticals in Commercial and
Corporate Lending and also lead special projects for the businesses including Consumer Banking, w.e.f. from October 16, 2023.

M S Chandrasekaran has taken charge as Chief Operating Officer, and Dolphy Jose, General Manager and Head of Consumer Banking of the Bank, was elevated to Chief General Manager and Head of Consumer Banking.

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First Published: Oct 17 2023 | 12:40 PM IST

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