ICICI Securities research report on Karur Vysya Bank
Karur Vysya Bank (KVB) has seen remarkable transformation under the current management with steady growth and superior RoA. KVB sports one of the lowest cost of deposits alongside superior NIMs among peers. The bank has one of the lowest LDRs (83%) and one of the highest LCRs (185%); thus, should sustain ~15% CAGR in loan growth through FY24– 26E. All-inclusive SMA pool at <0.5% and amongst lowest net NPA (<0.4%) along with minimal exposure to unsecured retail nourishes our confidence on further moderation in credit costs. Overall, we expect KVB to sustain its leadership on RoA/RoE within the mid and small private banks space.
Outlook
Maintain BUY; target price revised to INR 270, valuing the stock at ~1.6x FY26E ABV. Enviable positioning on LDR, LCR, asset quality and RoA should lead to further re-rating.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
