KARUR VYSYA BANK

{Ticker : 590003 { BUY: ₹105.70 { Tar­get: ₹116

Flash News Investment - - RECOMMENDATIONS -

Karur Vysya Bank re­ported im­pres­sive num­bers in Q1FY19, in­di­cat­ing that the worst phase in terms of as­set qual­ity is about to end this year. The advances grew by 12.9 per cent YoY, led by growth in re­tail and com­mer­cial credit seg­ments. The NII grew by 8.4 per cent YoY and NIM stood at 3.6 per cent. The non-in­ter­est in­come was up by 8 per cent YoY and is set to im­prove fur­ther through forex in­come. Of the to­tal slip­pages, 50 per cent were of cor­po­rate na­ture. driven by low agri­s­tock prices and LOU fa­cil­i­ties re­lated to tim­ber im­porters. But the bank is op­ti­mistic that slip­pages would im­prove in H2FY19 and credit costs would nor­malise. It is im­prov­ing the branch pro­duc­tiv­ity and fo­cus­ing on its dig­i­tal trans­for­ma­tion process. Con­sid­er­ing the good growth, we rec­om­mend it as a BUY.

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