 "Karur Vysya Bank Q1 net surges 57% to Rs 359 cr, sharp improvement in NPAs")
Tamil Nadu-based Karur Vysya Bank (KVB) on Monday reported a 57 per cent rise in net profit of Rs 359 crore for the first quarter of this financial year 2023-24, from Rs 229 crore in the same period of FY23.
The operating profit for the quarter rose 36 per cent to Rs 648 crore from Rs 475 crore during the April-June quarter of the previous financial year. During the period under review, its net interest income increased by 20 per cent to Rs 897 crore from Rs 746 crore in the corresponding quarter of the previous year.
On June 30 this year, the bank’s gross non-performing assets had improved by 329 basis points (bps) and stood at 1.99 per cent of gross advances compared with 5.28 per cent as on June 30 last year. Net non-performing assets were below 1 per cent and stood at 0.59 per cent of net advances, compared to 1.93 per cent a year ago. The lender's provision coverage ratio (PCR) was 93.41 per cent this June-end, compared with 82.74 per cent a year ago.
“We have been able to continue to demonstrate our consistent performance in terms of growth, profitability and asset quality for the first quarter ended June 2023. Our total business crossed Rs 1,47,671 crore. The inclusive growth from all the business segments has helped us to reach net profit of Rs 359 crore for the quarter,” said Ramesh Babu B, Managing Director and chief executive officer of KVB. “The momentum would be carried for the rest of the quarters of this fiscal,” he added.
The cost of deposits increased by 86 bps and stood at 4.96 per cent as compared to 4.10 per cent for the corresponding quarter of previous year. Net interest margin was 4.19 per cent, up by 34 bps over 3.85 per cent last year.
Total deposits as on June 2023 stood at Rs 80,715 crore, registering a YoY growth of 14 per cent or up by Rs 9,754 crore from Rs 70,961 crore as on June 2022. In the April-June quarter, the bank’s yield on advances grew to 9.69 per cent by 134 bps, compared with 8.35 per cent for the corresponding quarter of the previous year. Operating expenses for the quarter stood at Rs 581 crore as compared to Rs 470 crore during the year-ago.
Total business as on June 2023 stood at Rs 1,47,671 crore, up 14 per cent YoY from Rs 1,29,851 crore last June.