 "Karur Vysya Bank")
Karur Vysya Bank on Monday posted a 59 per cent rise in net profit at Rs 338 crore in the fourth quarter of financial year 2022-23 (Q4 FY23), compared to Rs 213 crore during the same time in FY22.
The Tamil Nadu-based lender’s operating profit for the quarter was Rs 739 crore as compared to Rs 441 crore during the Q4 of the previous financial year. The private bank’s net interest income (NII), the difference between interest earned and expended, increased 26 per cent from Rs 710 crore in Q4 FY22 to Rs 893 crore in Q4 FY23.
The bank’s gross non-performing assets (NPA) in Q4 FY23 declined to 2.27 per cent (Rs 1,458 crore) as compared to 6.03 per cent (Rs 3,431 crore) a year ago. During the period under review, net NPA stood at 0.74 per cent (Rs 468 crore) as against 2.31 per cent a year ago (Rs 1,260 crore). Provision coverage ratio (PCR) was at 92.14 per cent as at March 31, 2023, as against 80.27 per cent at March 31 last year.
The bank’s total deposits grew by 12 per cent to Rs 76,638 crore in Q4 FY23, compared to Rs 68,486 crore during the same period last financial year. In FY23, the bank’s net profit grew 64.3 per cent at Rs 1,106 crore from Rs 673 crore during corresponding period of previous year.
Net interest income increased by 23.3 per cent to Rs 3,349 crore in FY23 compared to Rs 2,716 crore in FY22. Net interest margin, a profitability indicator, stood at 4.18 per cent up by 46 bps as compared to 3.72 per cent during the corresponding period of the previous year.
“As a Bank, we have traversed a phenomenal distance in an extremely challenging environment. Broad-based business growth coupled with core revenue profile has yielded a higher ROA, currently at 1.27 per cent for the year and 1.50 per cent for the quarter, said Ramesh Babu B, managing director and CEO of Karur Vysya Bank, referring to return on assets.
Cost of deposits in Q4 FY23 improved by 4 bps and stand at 4.27 per cent as compared to 4.31 per cent during the corresponding period of previous year. Yield on advances grew to 8.93 per cent by 37 bps as compared to 8.56 per cent during the corresponding period of the previous year.
