Karur Vysya Bank‘s share price was surging on Tuesday morning going up over 9% to hit a new 52-week high of ₹185.60.
What Happened: The surge today comes as the company reported its December quarter results. The lender witnessed a 43% increase in net profit at ₹412 crore, up from ₹289 crore in the corresponding quarter of the previous year.
Net interest income also witnessed growth, increasing by 12.6% to ₹1,001 crore compared to ₹889 crore for the same quarter in the previous year. The net interest margin slightly decreased to 4.32% from 4.36% for the corresponding quarter last year.
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Provisions for the quarter amounted to ₹150 crore, showing a 59% decrease from ₹364 crore in the year-ago period, primarily due to lower slippages. Gross non-performing assets (NPAs) reduced to 1.58% as of December 31, 2023, compared to 2.70% a year ago. The net NPA ratio was at 0.42%, down from 0.90% in the corresponding period last year.
The lender counts Rekha Jhunjhunwala and Mukul Agrawal among its shareholders. Jhunjhunwala owns a 4.62% stake, whereas Agrawal owns a 1.06% stake.
Emkay maintained its “buy” rating on the stock raising the price target to ₹200 from ₹185. The brokerage said that the private lender continued its superlative performance led by healthy credit growth.
Price Action: Karur Vysya Bank’s share price was up 7.07% to trade at ₹181.85 shortly after market open on Tuesday.
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