This underdog bank outperformed its competitors, returning over 80 per cent returns year-to-date! Do you own it?
In the first quarter of FY23, the bank had exceptional growth of over 110 per cent, making a net profit of Rs 228.75 crore as opposed to Rs 108.87 crore in the same period of FY22.
Due to weak global cues, the Indian benchmark indices opened Monday’s trading session on a slightly lower note. Indian indices defied the trend and reversed earlier losses to trade higher, boosted by significant gains in the banking stocks. With gains of 1.60 per cent, BSE Bankex was one of the top-gaining sectors.
On an intraday basis on Monday, the shares of Karur Vysya Bank surged 1.90 per cent with volume of over four times high. BSE Bankex surged 10 per cent year-to-date whereas the shares of Karur Vysya Bank soared 67.16 per cent & 81.82 per cent on a six-month and YTD basis, respectively, surpassing other banks by a significant margin.
The total income increased by 5.91 per cent from Rs 1,579.26 crore in Q1FY22 to Rs 1,672.60 crore in Q1FY23. In the first quarter of FY23, the bank had exceptional growth of over 110 per cent, making a net profit of Rs 228.75 crore as opposed to Rs 108.87 crore in the same period of FY22.
||6 Months Returns (%)
||YTD Returns (%)
|Karur Vysya Bank
|Bank Of Baroda
|The Federal Bank
|City Union Bank
|The Karnataka Bank
|Ujjivan Small Finance Bank
India's banking sector contributes significantly to the country's economy and is a crucial one from a strategic perspective. The banking industry in India is well-regulated and adequately capitalised. India is the second-largest market for internet users and already has the second-highest number of smartphone users worldwide. India's improved digitalisation status has given the banking sector access to new markets in semi-urban and rural areas. And in the future, these elements will unquestionably be growth drivers for the industry.
Additionally, it is anticipated that increased infrastructure spending, rapid project execution, and continued reforms will fuel banking sector growth. All of these indications point to the banking sector in India being well-positioned for strong growth as rapidly expanding businesses turn to banks for their credit needs.
Keep a close eye on this scrip for the upcoming sessions!