Q2 2025 Karur Vysya Bank Ltd Earnings Call Transcript
Key Points
- Karur Vysya Bank Ltd (BOM:590003) reported a strong quarter with consistent growth in key metrics such as growth, profitability, and asset quality.
- The bank's total business grew by 4% to INR176,138 crores, with advances and deposits growing by 3% and 4% respectively.
- The bank achieved a Net Interest Margin (NIM) of 4.11% for the quarter, maintaining above 4% levels despite an increase in the cost of deposits.
- Gross NPA reduced to 1.1%, and the bank maintained a strong asset quality with a Net NPA of 0.28%.
- The bank's Return on Assets (ROA) improved to 1.72%, exceeding the guidance of maintaining above 1.65%.
- The corporate loan book de-grew by 4% due to lower availment in certain sectors and non-conducive pricing.
- CASA growth was only 1% sequentially, indicating challenges in growing low-cost deposits.
- Operating expenses increased by 7% sequentially, driven by higher establishment costs and provisions.
- The bank's liquidity coverage ratio (LCR) decreased to 128%, which may impact growth and margins.
- Fee income growth remained stagnant despite an increase in the share of retail loans.
Ladies and gentlemen, good day, and welcome to the Q2 FY25 earnings conference call of the Karur Vysya Bank. We have with us today, the management team of KVB represented by Mr. Ramesh Babu, MD and CEO; Mr. Natrajan, Executive Director; and Mr. Ram Shankar, CFO.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. B. Ramesh Babu. MD and CEO to take us through the highlights of the quarter gone by after which we will open the floor for question. Over to you, sir.
Thank you. Thank you very much. So good evening to all of you. On behalf of Karur Vysya Bank, I welcome you all for our bank's earning call for the quarter two of the financial year 2025. So we trust that you, your colleagues and family members are keeping well and are in good health. So we have uploaded our financial results along with the presentation on our website and I hope you have had a chance to go through it in detail and
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