Karur Vysya Bank Q3 net up four-fold to Rs 185 crore on flattish revenue

Net interest income up 18% to Rs 687 cr; gross NPAs down to 6.97% from 7.37% in the year-ago quarter

Karur Vysya Bank (KVB) has posted a four-fold rise in net profit during the third quarter of the financial year 2021-22 to Rs 185 crore as compared to Rs 35 crore during the same period last fiscal.

The bank's total income during the quarter was down marginally to Rs 1,600 crore as against Rs 1,614 crore during the same quarter in 2020-21. Operating profit for the quarter stood at Rs 402 crore – up by Rs 133 crore from Rs 269 crore for Q3 of the previous year.

Net interest income for the quarter improved by 18 per cent to Rs 687 crore for the current quarter from Rs 584 crore for Q3 of FY 2020-21. Net interest margin stands at 3.68 per cent. Cost of deposits has reduced by 58 basis points to 4.22 per cent compared to 4.80 per cent during the previous period. Yield on advances was at 8.42 per cent (8.66 per cent for Q3 of previous year). Non interest income (excluding treasury profit) improved to Rs 209 crore for the quarter as compared to Rs 197 crore during the previous period

KVB improved its asset quality during the quarter, with gross non-performing assets (NPAs) falling to 6.97 per cent (Rs 3,888 crore) of the gross advances as of December 31, 2021, as against 7.37 per cent (Rs 3,842 crore) in the year-ago period.