Multibagger Update: This bank outperformed its competitors, returning over 125% returns year-to-date!

On an intraday basis on Monday, the shares of Karur Vysya Bank soared over 6%, reaching a new 52-week high.

Indian headline indices surged on Monday as a result of the upswing in Asian markets and the drop in oil prices. The majority of the sectors were trading higher than 1%, with BSE Auto being the top gainer, headed by Cummins India Ltd.

BSE Bankex was one of the session's market laggards. Nonetheless, Karur Vysya Bank managed to grab the attention of investors with its remarkable returns. On an intraday basis on Monday, the shares of Karur Vysya Bank soared over 6%, reaching a new 52-week high.

BSE Bankex surged 14% year-to-date, whereas the shares of Karur Vysya Bank soared 115% and 125% on a six-month and YTD basis, respectively, surpassing other banks by a significant margin.

The total income increased by 5.91% 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%, making a net profit of Rs 228.75 crore as opposed to Rs 108.87 crore in the same period of FY22.

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 is 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!