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Karur Vysya Bank - Improving Loan Growth Metrics, Asset Quality Parameters To Drive Rerating: HDFC Securities

Karur Vysya Bank - Improving Loan Growth Metrics, Asset Quality Parameters To Drive Rerating: HDFC Securities

<div class="paragraphs"><p>Karur Vysya Bank exterior. (Source: Bank's website)</p></div>
Karur Vysya Bank exterior. (Source: Bank's website)

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Retail Research

With century long operating history and deep-rooted presence in the southern states, Karur Vysya Bank Ltd. has been able to build a granular and sticky retail franchise as well as a well-diversified advances portfolio across segments.

After many years of distressed credit history and low profitability, the bank has been reporting improved numbers lately, which shows early signs of a turnaround in quality of earnings.

The management has given healthy growth guidance for the current financial year.

We are bullish on Indian banking sector as majority of the bad book clean-up has been done and there could be lower slippages and higher resolutions and recoveries in the coming quarters.

Karur Vysya Bank with improved loan book quality, steady net interest margin trajectory, granular deposit franchise, adequate capitalisation and improving line of sight on lower credit costs looks promising.

Click on the attachment to read the full report:

HDFC Securities Retail Research Stock Update Karur Vysya Bank.pdf

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