Karur Vysya Bank reported weak numbers in Q3 after showing some signs of recovery in the preceding quarter. While advances growth improved to 16.6% YoY (11.0% in Q2 & 7.7% in Q1); gross NPAs increased substantially by 111bps on QoQ basis to 5.94%. The net interest income (NII) growth was muted at 8.5% led by interest reversals. However, pre-provisioning profit (PPP) grew at a healthy pace of 25.7% mainly due to 32.2% increase in non-interest income. Net profit continued to decline further down 38.2% YoY (5.5% QoQ). Recommendation: We have been maintaining Neutral rating on KVB due to...