The Karur Vysya Bank stock has been on a high. In the past month the stock has rallied over 28 percent. The stock has risen over 12 rupees in the past five days alone and is trading at around Rs 59 a share on the National Stock Exchange.

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The scrip shot up over seven percent just today after the bank reported a 13-quarter high net interest margins (NIMs) of 3.82 percent for the first quarter that ended on June 30, 2022, driven by robust loan growth of 15.21 percent, the best in 17 quarters on year on year (YoY) basis on Tuesday.

The bank's slippages have also declined to a 6-quarter low at Rs 139 crore and it expects to report a 15 percent loan growth for FY23.

While speaking to CNBC-TV18, B Ramesh Babu, MD and CEO of Karur Vysya Bank said, “We want to grow more in the commercial segment. We would like to go for around 15 percent there and the retail also we want to grow at 15 percent and agriculture already we are at 16. In corporate, we want to be selective, around 12 percent is what we are planning. So that way overall we feel that around 15 percent of the credit growth we are expecting this year.”.

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Karur Vysya Bank’s gross non-performing assets (GNPAs) stand at 9.4 percent at Rs 3,107 crore versus Rs 3,431 crore it reported in last quarter.

“Our GNPAs is 18 quarter low and the net NPA is 20 quarter low. Our slippages are negative for the last four quarters and we would like to continue with the same tempo,” he said.

In terms of return on assets (RoA) he said, “We were at 1.06 end of March and 1.09 now, so in that range 1.10 to 1.15 may run for next two quarters. Our plan is to land at around 1.2 to 1.25 end of March so that that becomes a base for the next year.”

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(Edited by : Abhishek Jha)

First Published:Jul 26, 2022 3:05 PM IST