Ranvir’s Portfolio

Karur Vysya Bank –
Q2 FY 25 results and concall highlights –

Advances / Loans @ 80.2k cr, up 14 pc YoY
Deposits @ 95.8k cr, up 15 pc YoY
CASA deposits @ 28.3k cr, up 5 pc YoY

NII – 1060 vs 915 cr, up 16 pc
Other income – 472 vs 339 cr, up 39 pc
Operating expenses – 716 vs 616 cr, up 16 pc
Operating profits – 816 vs 638 cr, up 28 pc
Provisions – 180 vs 127 cr, up 42 pc
PBT – 636 vs 511 cr, up 24 pc
PAT – 473 vs 378 cr, up 25 pc

RoA @ 1.72 vs 1.57 pc
RoE @ 17.3 vs 16.5 pc
NIMs @ 4.11 vs 4.07 pc
Spreads @ 3.33 vs 3.32 pc
Cost/Income @ 46.72 vs 49.14 pc

Gross NPAs @ 1.10 pc, down 63 bps
Net NPAs @ 0.28 pc, down 19 bps
PCR @ 96 pc

Breakup of loan book –

Retail – 19.6k cr, up 21 pc YoY

Agri ( more than 90 pc are against gold ) – 18.8k cr, up 16 pc YoY

Corporate ( loans > 25 cr ) – 13.1k cr, down 9 pc YoY

Commercial ( loans < 25 cr ) – 28.7k cr, up 22 pc YoY

Avg ticket size of commercial loans is around 50 lakh. 38 pc of commercial loans are > 5 cr

Avg ticket size of corporate loans around 36 cr. 86 pc of corporate loans are < 150 cr

Slippages for Q2 @ 181 cr vs 155 cr YoY ( well within control )

Recoveries for Q2 @ 100 cr vs 115 cr YoY

Total number of branches @ 841 on 30 Sep 24 vs 799 on 30 Sep 23

Retail loan book growth was primarily driven by mortgages

Deposits growth remains a key priority for the bank. Expecting a 10 bps rise in rate of deposits in Q3

Bank is able to sustain NIMs > 4 pc due better growth in retail, agri segments vs low margin corporate segment

Expecting NIMs in Q3 to be around 4 pc mark ( vs 4.11 pc in Q2 due expectation of moderate increase in rate of deposits and no increase in yield on advances )

Confident of sustaining RoAs @ > 1.65 pc levels for rest of FY

Confident of maintaining the gross slippage ratio below 1 pc for full FY ( in Q2, it was 0.23 pc – not annualised )

Total unsecured book stands @ 2.4 pc ( being very cautious in growing the MFI book )

Bank is de-focussing on the corporate segment because of lower yeilds vs the funds they r raising via term deposits. Once CASA growth comes back, they ll re-focus on their corporate loan book

26 pc of bank’s book consists of Gold Loans ( under Agri + Retail segments )

Textile sector ( in the MSME segment ) in TN area is doing well vs last year

Yeild on Loan against property is around 9.5 pc. Company’s LAP portfolio is majorly concentrated in South India ( TN + Karnataka + AP + Telangana )

Spending aggressively on IT + Cyber Security + New branches. Aim to open 100 branches in current FY

Aim to keep growing the Retail + Agri + MSME book at rates > 18 pc. Achieving this is absolutely critical for the bank as the corporate book is expected to continue to de-grow for some time

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation