Karur Vysya Bank Ltd. (KARURVYSYA.BO) recently released its Q3 24/25 earnings call transcript on Yahoo Finance. The transcript provides insights into the bank’s financial performance and future outlook.
The bank reported a net profit of ₹210.91 crore for the quarter ended December 2024, compared to ₹185.57 crore in the same quarter last year, representing a growth of 13.6%. The bank’s total income increased by 14.1% to ₹1,834.23 crore from ₹1,606.45 crore in the corresponding quarter of the previous year.
The bank’s net interest income (NII) grew by 15.1% to ₹744.23 crore from ₹646.35 crore in the same quarter last year. The NII margin improved to 3.44% from 3.28% in the corresponding quarter of the previous year.
The bank’s provisions and contingencies decreased by 23.1% to ₹146.19 crore from ₹189.99 crore in the same quarter last year. The bank’s gross non-performing assets (NPAs) decreased to 4.48% from 5.15% in the corresponding quarter of the previous year.
The bank’s capital adequacy ratio (CAR) improved to 17.41% from 16.43% in the corresponding quarter of the previous year. The bank’s return on assets (ROA) improved to 1.23% from 1.15% in the same quarter last year.
The bank’s management stated that the bank is focusing on increasing its CASA (current account and savings account) deposits, which currently stand at 28.41%. The bank is also focusing on increasing its retail lending, which currently accounts for 55.41% of the bank’s total lending.
The bank’s management also stated that the bank is planning to increase its digital banking services, including mobile banking and internet banking. The bank is also planning to increase its presence in rural areas, where it currently has 433 branches.
Overall, the bank’s Q3 24/25 earnings call transcript suggests that the bank is performing well, with growth in net profit, NII, and total income. The bank’s management is focusing on increasing its CASA deposits, retail lending, and digital banking services, which is expected to drive future growth. However, the bank’s gross NPAs remain a concern, and the bank needs to focus on reducing them to improve its financial performance.