Check Before You Invest : Karur Vysya Bank Ltd

BSE: 590003 NSE: KARURVYSYA ISIN: INE036D01028

| Sector: BFSI | Industry: Bank - Private

Snapshot

Q.1 Which industry/sub-sector does Karur Vysya Bank Ltd belong to?

Karur Vysya Bank Ltd belongs to the BFSI sector, operating specifically within the Bank - Private segment.

Q.2 Is Karur Vysya Bank Ltd a good quality company?

Karur Vysya Bank Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Karur Vysya Bank Ltd undervalued or overvalued?

Karur Vysya Bank Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Karur Vysya Bank Ltd a good buy now?

Karur Vysya Bank Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Karur Vysya Bank Ltd?

Karur Vysya Bank Ltd Total Income growth is 16.68% for FY-2025, which is above its 5-year CAGR of 10%, indicating faster growth.

Q.2 Return on Assets of Karur Vysya Bank Ltd?

Karur Vysya Bank Ltd Return on Asset is 1.7%, which is above its 5-year historical median of 1.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NIM%	3.68	3.68
PPOP%	18.95	18.95
RoA%	1.7	1.3

Q.3 Return on Equity (ROE) of Karur Vysya Bank Ltd?

Karur Vysya Bank Ltd Return on Equity is 17.7% for FY-2025, which is above its 5-year historical median of 13.7%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Karur Vysya Bank Ltd?

Karur Vysya Bank Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 18.95% for FY-2025, which is in line with its 5-year median(18.95%), indicating stable margins.

Q.5 Net Interest Margin of Karur Vysya Bank Ltd?

Karur Vysya Bank Ltd Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 3.68% for FY-2025, which is in line with its 5-year median( 3.68%), indicating stable margins.

Q.6 Total Asset growth of Karur Vysya Bank Ltd?

Karur Vysya Bank Ltd Total Asset growth is 13.19% for FY-2025, which is above its 5-year CAGR of 11.82%, indicating faster growth.

Q.7 Cost to Income ratio of Karur Vysya Bank Ltd?

Karur Vysya Bank Ltd Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 47.3% for FY-2025, is lower its historical 5-year median of 48.3%, indicating deteriorated cost management.

Q.8 Capital Adequacy ratio of Karur Vysya Bank Ltd?

Karur Vysya Bank Ltd Capital Adequacy ratio (CAR) is 18.2% for FY-2025, which is above the regulatory requirement of 12%, indicating strong capital position.

Q.9 Asset Quality of Karur Vysya Bank Ltd?

Karur Vysya Bank Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 0.76% for FY-2025, which is below its 5-year median 2.27%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.2% which is below its 5-year median( 0.74%), indicating improving asset quality.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Karur Vysya Bank Ltd?

Promoters hold 2.07% of the Karur Vysya Bank Ltd, with 3.85% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Karur Vysya Bank Ltd vs Industry Peers?

Karur Vysya Bank Ltd AUM CAGR is 11.82%, compared to the 5-year industry median CAGR of 12.74%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NIM, PPOP, RoA) of Karur Vysya Bank Ltd vs industry peers

Karur Vysya Bank Ltd profit metrics are in line with the industry median level of 7.71%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM%	3.68	3.71
PPOP%	18.95	18.38
RoA%	1.7	1.05

Q.3 Operating efficiency of Karur Vysya Bank Ltd vs industry peers?

Karur Vysya Bank Ltd Cost to Income (47.95) is below the industry median of (61.45); while the current ROE (13.7) are above than the 5-year average Industry ROE (12.3). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM%	3.68	3.71
PPOP%	18.95	18.38
RoA%	1.7	1.05
Cost to Income%	47.3	61.45
ROE%	17.7	12.3

Valuation & price assessment

Q.1 Stock return of Karur Vysya Bank Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 16% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	16%	46.5%	53.5%	63.9%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	12.34	9.64	13.38
Price to Book	2.1	1.23	1.37
Price to Sales	2.66	1.57	1.77
EV to EBITDA	6.07	4.39	7.70

Q.4 Valuation ratios of Karur Vysya Bank Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.1% is higher than its historical median of 1.23%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Karur Vysya Bank Ltd return on invested capital (ROIC) is 44.69% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

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