Karur Vysya Bank's recent financial results for the second quarter of the fiscal year 2024 (Q2FY24) have shown a promising growth in key metrics, fueling a bullish sentiment in the market. The bank's stock experienced a 2% surge, trading at ₹135.97 on Tuesday. This comes in line with InvestingPro's real-time metrics, which indicated a large price uptick over the last six months.
The financial institution reported a significant 15.3% growth in advances, reaching ₹70,446 crore (INR100 crore = approx. USD12 million). This aligns with the InvestingPro Tip that revenue growth has been accelerating for Karur Vysya Bank. Concurrently, deposits also saw an increase of 13.2%, amounting to ₹83,068 crore. This robust performance was mirrored in the bank's net profit which rose significantly to Rs 359 crore. As InvestingPro Tips highlighted, the bank's consistent increase in earnings per share is a testament to its financial strength.
In addition to its strong financial performance, Karur Vysya Bank also managed to reduce its gross and net non-performing assets to 1.99% and 0.59% respectively. These figures likely contributed to the positive market response and the subsequent rise in the bank's stock. It's worth noting that the bank is a prominent player in the industry, as pointed out by InvestingPro Tips.
ICICI Securities expressed confidence in Karur Vysya Bank's future performance following these results. The firm established a bullish target price of ₹165 for its stock, reflecting expectations of continued growth and stability for the bank moving forward. This comes as no surprise, as InvestingPro's real-time metrics show that the bank's stock is trading near its 52-week high, and analysts predict the company will be profitable this year.
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