Karur Vysya Bank Ltd. share price target

Background: Karur Vysya Bank (KVB) is one of the mid-sized banks in the private sector space, operates through a network of 675 branches and about 1,674 ATMs. KVB's business - 82% is concentrated in South India with about 73% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 1QFY17 the total business stood at INR 901bn. The bank is capitalized with a total CAR of 11.67% (Basel III). Gross NPAs were reported at 1.79% with provision...

KVB's advances grew steadily despite tight credit policy at (7.6% YoY, 4.2% QoQ) to INR 395bn led by Commercial (8.4% YoY, 4.8% QoQ), Agriculture (12.7% YoY, 12.5% QoQ) & Retail (12.2% YoY, 4.3% QoQ) with Corporate advances showing a muted growth (2.7%YoY). Consequently, their share in loan mix was noted at 32.3%, 17.8%, 15.0% and...

Ravi Shenoy (ravi.shenoy@MotilalOswal.com); Tel: +91 22 30896865 Investors are advised to refer through important disclosures made at the last page of the Research Report. Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P; Capital....

Background: Karur Vysya (KVB), among the mid-sized banks in the private sector space, operates through a network of 657 branches and about 1,651ATMs. KVB's business 82% is concentrated in South India with about 73% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 2QFY16 total business INR 842bn. The bank is among the better capitalized banks in the industry with a total CAR of 13.0%( Basel III). Gross NPAs were reported at 1.96%...

Background: Karur Vysya (KVB), among the mid-sized banks in the private sector space, operates through a network of 657 branches and about 1,651ATMs. KVB's business 82% is concentrated in South India with about 73% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 2QFY16 total business INR 842bn. The bank is among the better capitalized banks in the industry with a total CAR of 13.0%( Basel III). Gross NPAs were reported at 1.96%...

Background: Karur Vysya (KVB), among the mid-sized banks in the private sector space, operates through a network of 634 branches and about 1,631ATMs. KVB's business 82% is concentrated in South India with about 73% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 1QFY16 total business INR 829bn. The bank is among the better capitalized banks in the industry with a total CAR of 13.2%( Basel III). Gross NPAs were reported at 1.85%...

Background: Karur Vysya (KVB), among the mid-sized banks in the private sector space, operates through a network of 629 branches and about 1,645ATMs. KVB's business 82% is concentrated in South India with about 73% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 3QFY15 total business INR 814bn. The bank is among the better capitalized banks in the industry with a total CAR of 14.01 %( Basel III). Gross NPAs were reported at...

Background: Karur Vysya (KVB), among the mid-sized banks in the private sector space, operates through a network of 612 branches and about 1,647ATMs. KVB's business 82% is concentrated in South India with about 73% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 3QFY15 total business INR 808bn. The bank is among the better capitalized banks in the industry with a total CAR of 14.01 %( Basel III). Gross NPAs were reported at...

at 27% CAGR between FY09-14 on the back of expansion drive wherein it increased the no. of branches 1.8x from 312 in FY09 to 572 in FY14. The bank has changed its focus from corporate and...