Karur Vysya Bank Q1 net profit rises marginally to Rs 109 cr

However, the bank's total income during Q1FY22, fell to 6% to Rs 1,596 crore; NII up 14% to Rs 638 cr

Karur Vysya Bank (KVB) has posted a marginal rise of 3 per cent in net profit for the first quarter of the current financial year to Rs 109 crore up from Rs 106 crore during April to June period of the previous fiscal.

However, the bank’s total income during Q1 of 2021-22, fell to Rs 1,596 crore, down 6 per cent from Rs 1,693 crore during the same quarter in 2020-21. KVB’s operating profit for the quarter stood at Rs 429 crore, down by Rs 45 crore from Rs 474 crore for the first quarter of the previous year.

Net interest income for the quarter too improved by 14 per cent to Rs 638 crore for the current quarter from Rs 562 crore for Q1 of FY 2020-21.

The lender's credit portfolio grew by 8 per cent to Rs. 3,698 crore and gross advances stood at Rs 52,315 crore, up from Rs 48,617 crore a year ago. “Improved credit off take in retail and business segments as well as jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels, aided the credit growth,” the bank said in a statement. Jewel Loan portfolio saw a growth of 32.8% and stands at Rs 13,206 crore during the April to June period of the current fiscal.

The bank’s total business registered a rise of 7.4 per cent to Rs 1,16,713 crore during the period under review, from Rs 1,08,682 crore during the quarter ended in June 2020. During the quarter, the company’s gross non-performing assets declined to 7.97 per cent (Rs 4,167 crore) as compared to 8.34 per cent (Rs 4,056 crore) a year ago.  

Total deposits grew by 7 per cent per cent to Rs 64,398 crore, from Rs 60,065 crore as June 2020. Growth was aided through sustained improvement in CASA portfolio and retail term deposits. CASA share was up by 208 bps to 35 per cent; CASA deposits were up by Rs 2,775 crore posting a growth of 14 per cent to Rs 22,688 crore during the quarter under review.