This smallcap multibagger bank outperformed its competitors, soaring 130 per cent in just six months!
It has the lowest PE and a relatively high RoE and RoCE among the top private sector banks.
Indian headline indices started the session higher but were quickly dragged down, primarily due to significant losses in banking stocks. BSE Bankex performed the worst, losing nearly 1 per cent, with Axis Bank and Kotak Mahindra Bank among the Top Losers.
Investors were impressed by Karur Vysya Bank, the best-performing stock in the banking sector, if overall performance in the sector was taken into account. The shares of Karur Vysya Bank attracted investors by skyrocketing 130 per cent in just the last six months, outperforming sectoral index BSE Bankex by a significant margin.
The bank's ability to maintain a high CASA ratio reflects its improved operating efficiency. It has the lowest PE and a relatively high RoE and RoCE among the top private sector banks. Additionally, it is a reliable stock for dividends.
In FY22, the bank reported a net profit of Rs 673.27 crore, an outstanding increase of 87.34 per cent from the net profit of Rs 359.39 crore in FY21. From Q2FY22's level of Rs 1,562.61 crore to Rs 1,821.05 crore in Q2FY23, the total income surged by 16.54 per cent. The bank had phenomenal growth in the second quarter of FY23, boosting its net profit by 51.24 per cent.
Karur Vysya Bank, headquartered in Karur (Tamil Nadu), is one of India's leading banks, having been in operations for more than 100 years. The bank primarily operates in the treasury, corporate banking, wholesale banking and retail banking divisions.
Keep a close eye on this stock for the upcoming sessions.