Fitch rates Karur Vysya Bank bonds A+(ind)

Fitch Ratings said it assigned Karur Vysya Bank Ltd. a national long-term rating of A+(ind) and the same to its proposed Rs.3 billion lower tier 2 subordinated bonds program and affirmed its national short-term rating at F1(ind) and Rs.3 billion certificates of deposit at F1(ind).

The outlook is stable.

The ratings are driven by a track record of stable profitability and satisfactory core capitalization, which provides it resilience during the cyclical downturn, Fitch said.

The ratings also reflect the bank's vulnerability to asset quality shocks due to concentration risks in its credit portfolio, in particular industry sectors and small and mid-sized companies, the agency added.

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