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Quarterly Results for Karur Vysya Bank and Indian Overseas Bank
This document summarizes the Q2FY25 quarterly results for Karur Vysya Bank Ltd. and Indian Overseas Bank. Both banks reported strong financial performance with growth in key metrics and improvements in asset quality.

by RA ALOK DAIYA SEBI Reg. INH000011468

Karur Vysya Bank Q2FY25 Overview
Karur Vysya Bank announced Q2FY25 results with significant growth across various financial metrics:
  • Total Business up by 14.74% YoY and 3.57% for the quarter.
  • Deposits up by 15.37% YoY and 3.78% for the quarter.
  • Loan Book grew at 13.98% YoY and 3.33% for the quarter.
  • CASA up by 5.37% YoY, CASA ratio stood at 29.46%.
Karur Vysya Bank Profitability Metrics
PPOP and NIM
PPOP up by 21.46% YoY. NIM at 4.12%, down by 1 bps YoY.
Other Income and Cost Ratio
Other Income up by 28% YoY. Cost to Income Ratio for the HY is at 46.95%.
ROA and ROE
ROA at 1.72% for the quarter. ROE at 17.36% for the quarter.
Karur Vysya Bank Asset Quality and Capital Adequacy
The bank reported improvements in asset quality and maintained strong capital adequacy:
  • GNPA at 1.10%, NNPA at 0.28%.
  • Capital adequacy ratio (CRAR) stood at 16.28% with CET 1 ratio of 15.39%.
Karur Vysya Bank Detailed Financial Performance
Net profit for the quarter registered a robust growth of 25.13% and stood at Rs 473 crore from Rs 378 crore during corresponding quarter of previous year. PPOP for the quarter increased by 27.90% is at Rs 816 crore, as compared to Rs 638 crore for corresponding quarter of the previous year. Net interest income increased by 15.85% to Rs 1,060 crore vis-a-vis Rs 915 crore for corresponding quarter of previous year.
Karur Vysya Bank Interest Margins and Income
Net interest margin stands at 4.11% as compared to 4.07% for the corresponding quarter of the previous year. Cost of deposits has increased by 40 bps and stands at 5.56 % as compared to 5.16% for the corresponding quarter of previous year. Yield on advances grew to 10.08% by 32 bps as compared to 9.76% for the corresponding quarter of the previous year.
Karur Vysya Bank Fee Income and Operating Expenses
Commission and fee based income has improved by 18.37% on YoY basis to Rs 232 crore from Rs 196 crore for corresponding quarter of the previous year. Operating expenses for the quarter was Rs 716 crore as compared to Rs 616 crore during the corresponding quarter of previous year. Cost to income ratio stands at 46.72% (49.14% for Q2 of previous year).
Karur Vysya Bank Asset Quality Details

1

Gross Non-Performing Assets
Gross non-performing assets (GNPA) has improved by 63 bps and stands at 1.10% of gross advances as on Q2FY25 (Rs 886 crore) and 1.73% as on Q2FY24 (Rs 1,219 crore).

2

Net Non-Performing Assets
Net non-performing assets (NNPA) is below 1% and stands at 0.28% of net advances as on Q2FY25 (Rs 219 crore), 0.47% as on Q2FY24 (Rs 324 crore).

3

Provision Coverage Ratio
Provision Coverage Ratio (PCR) was at 96.09% as at Q2FY25, as against 94.49% as at Q2FY24.
Karur Vysya Bank Distribution Network
As of Q2FY25, the Bank's distribution network stands at 841 branches and 1 Digital Banking Unit and 2,208 ATMs / Cash Recyclers as against 824 branches & 1 Digital Banking Unit and 2,244 ATMs / Cash Recyclers as of Q2FY24. 56% of our branches are in semi-urban and rural areas.
Karur Vysya Bank CEO Statement
Ramesh Babu B, Managing Director & CEO, The Karur Vysya Bank said: We have achieved another strong quarter of performance, guided by our three key metrics: growth, profitability, and asset quality. The bank's performance indicators align with our guidance, demonstrating consistent and steady growth. It's encouraging to see inclusive growth in our RAM (Retail, Agriculture, and MSME) verticals, continuing the strong start we made last quarter. I am confident that the same will be maintained in the ensuing quarters. Our total business crossed Rs1,76,138 crore. The inclusive growth from all the business segments has supported for reaching net profit of Rs 932 crore for the half year.
Indian Overseas Bank Q2FY25 Overview
Indian Overseas Bank announced Q2FY25 results with significant growth in key financial metrics:
  • Total Business saw a significant year-on-year (YoY) growth of 12.20%, reaching Rs 5,40,801 crore, up from Rs 4,82,006 crore.
  • Total Deposits rose by 13.75% YoY to Rs 3,10,652 crore.
  • Gross Advances increased by 10.16% to Rs 2,30,149 crore.
  • Operating Profit grew substantially by 26.89% YoY to Rs 2,128 crore, up from Rs 1,677 crore.
  • Net Profit also saw a notable increase, rising by 24.32% YoY to Rs 777 crore.
Indian Overseas Bank Asset Quality and Profitability
IOB has demonstrated exceptional progress in reducing non-performing assets:

1

Gross NPA Ratio
Decreased by 202 basis points (bps) to 2.72% from 4.74% a year ago.

2

Net NPA Ratio
Improved by 21 bps to 0.47% from 0.68% YoY.

3

Provision Coverage Ratio
PCR improved to 97.06%, reflecting an increase of 30 bps YoY.

4

Return on Assets and Equity
The Return on Assets (ROA) for Q2FY25 reached 0.82%, showing an improvement of 7 bps from the previous year, while Return on Equity (ROE) increased to 16.90%, up by 74 bps YoY.
Indian Overseas Bank Income and Margin Growth
IOB's income generation remained strong:
  • Total Income increased by 22.34% YoY to Rs 8,484 crore.
  • Interest Income grew by 17.69% YoY to Rs 6,851 crore.
  • Non-Interest Income saw an impressive YoY growth of 46.59%, reaching Rs 1,633 crore.
  • Additionally, the Net Interest Margin (NIM) stood at 3.08% for the quarter
Indian Overseas Bank Capital Adequacy
The bank's Capital Adequacy Ratio (CRAR), under Basel III, remained robust at 17.45%, with a Tier I component of 14.75%.
Indian Overseas Bank CASA and CD Ratios
CASA deposits improved by 10.61% YoY, totaling Rs 1,31,856 crore, with a CASA ratio of 42.44% as of September 30, 2024. The Credit to Deposit (CD) Ratio stood at 74.09% for the quarter.