Karur Vysya Bank net profit surges 51% to Rs 378 cr in quarter ending Sept

Total advances were Rs 70,448 crore, marking a 15.32 per cent growth from Rs 61,086 crore in the previous year

Karur Vysya Bank (KVB) on Monday reported a 51 per cent rise in net profit to Rs 378 crore in the second quarter of this financial year (Q2FY24), up from Rs 250 crore during the year-ago quarter.

The Tamil Nadu-based company’s operating profit for Q2 increased 12 per cent year-on-year (Y-o-Y) to Rs 638 crore from Rs 572 crore during Q2FY23. During the period, its net interest income increased 11.45 per cent to Rs 915 crore in Q2. The bank’s net interest margin stood at 4.07 per cent in the July-September quarter compared to 4.10 per cent the previous year.

As on September 30, the bank’s gross non-performing assets (GNPA) improved by 229 basis points (bps) and stood at 1.73 per cent of gross advances or Rs 1,219 crore. The GNPA was 4.02 per cent or Rs 2,457 crore on the same day last year. As of June 30, the GNPA had improved by 329 bps and stood at 1.99 per cent of gross advances compared to 5.28 per cent on the same day last year.

Net non-performing assets (NNPA) were below 1 per cent and stood at 0.47 per cent (Rs 324 crore) of net advances as on September 30, versus 1.38 per cent (Rs 819 crore) by the end of last September. The lender's provision coverage ratio (PCR) was 94.49 per cent during the period under review, as against 86.94 per cent a year ago.

“I am pleased to mention that our bank had crossed the historical milestone of total business of Rs 1.5 trillion during the last quarter and reached a level of Rs 1.53 trillion. We have delivered yet another quarter of strong top line and bottom line performance with highest-ever quarterly net profit with consistent performance in terms of growth, profitability, and asset quality,” said Ramesh Babu B, managing director and chief executive officer, Karur Vysya Bank.

In Q2, the cost of deposits increased by 107 bps and stood at 5.16 per cent, compared to 4.09 per cent in Q2FY23. Total deposits as on September 30 were seen at Rs 83,068 crore, registering 13.17 per cent Y-o-Y growth or up by Rs 9,670 crore from Rs 73,398 crore in September 2022. During the period, total advances were Rs 70,448 crore, up 15.32 per cent Y-o-Y from Rs 61,086 crore last year.