Shares of this banking company jumped around 1 percent after the well-known mutual fund house purchased 1.2 crore equity shares in the company. The shares have delivered more than 50 percent returns to its shareholders on a YTD basis.
With a market capitalisation of Rs.13,356 crores, the shares of Karur Vysya Bank Ltd started Wednesday’s trading session positively at Rs. 168.75 compared to its previous close of Rs. 164.95. The share hit a high of Rs. 170.40, gaining around 1 percent, which is also recorded as the company’s fresh 52-week high. The shares are currently trading at Rs. 166.30 apiece.
Such a positive movement in the stock price was observed after the SBI mutual fund purchased 1.2 crore equity shares, equivalent to 1.5 percent of paid-up equity, amounting to Rs 194.4 crores in the banking company at Rs 162 per share indicating a slight discount of 1.21 percent.
Looking at the company’s financial statement, the revenue increased 6 percent from Rs. 1,883 crores in the June quarter to Rs. 1,997 crores in the September quarter. On a contrasting note, the net profit decreased by 5 percent from Rs. 359 crores to Rs. 378 crores during the same timeframe.
Coming onto the important ratios, the net NPA of the bank decreased from 2.28 times during FY21-22 to 0.74 times in FY22-23. On the other hand, the CASA ratio decreased marginally by 34.9 times to 33.21 times during the same period.
The bank plans to open 40 new branches during the fiscal year, with 25 branches already opened. The banking company is focusing on personal loans which will be fulfilled through partnerships, and co-lending arrangements. Furthermore, the company aims to maintain a ROA above 1.5 percent in future years and is focused on granular growth with an emphasis on the Retail and MSME segments.
Headquartered in Karur, Karur Vysya Bank Ltd was incorporated in 1916. The company is engaged in providing a wide range of banking and financial services including commercial banking and treasury operations.
Written By Vaibhav Patil
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