Karur Vysya bank's shares \u00a0have returned more than 92% since January, but there\u2019s a lot more upside to come, says HDFC Securities. In its latest \u2018Pick of the Week\u2019 report, HDFC Securities has advised the investors to buy the stock with a target price of Rs 181. The scrip closed at Rs 159.10 on Monday up by more than 1.27%. According to the research firm,Karur Vysya bank has consistently maintained comfortable capital adequacy, backed by regular capital infusion through rights issues and moderate internal accruals. HDFC Securities says that slippages should decline going forward, as the bank has already restructured a major portion of troubled assets. Pointing to the strengths of the company, HDFC Securities says that, with a shift in focus to Retail\/SME lending, loan growth is expected to pick up. Further, lower credit costs would ensure higher growth in PAT and improvement in return ratios for Karur Vysya Bank. HDFC Securities believes that the new MD Mr P R Seshadri, who comes from CITI Bank, could bring in fresh insights and strategies to boost Net Interest Income and fee income. Pointing to the concerns of the bank, HDFC Securities says that the bank has high geographic concentration as it derives more than half of its business from its branches located in the state of Tamil Nadu. Any change in the socio-political scenario or a natural calamity could impact its borrowers and worsen the asset quality, says the firm. Further, the research firm says that the bank is likely to face greater competitive intensity as it looks to expand its retail footprint even as this might impact its fee income. \u201cDeterioration in asset quality NPA of the bank have increased significantly in the past 2 years. Any further deterioration in asset quality could result in higher provisioning requirements leading to lower profitability,\u201d observes the report. Karur Vysya Bank is a south based private-sector bank, headquartered in Karur in Tamil Nadu. The bank was set up in 1916 by M. A. Venkatarama Chettiar and Athi Krishna Chettiar. The lender has recently completed 100 years of operations and is one of the oldest banks in India. The bank has a strong presence in its home state of Tamil Nadu and other southern states. At the end of June 2017, the bank had 719 branches (53% in Tamil Nadu, 85% in South India) and 1750 ATMs.