The Hindu Business Line : Karur Vysya Bank Q4 net up 33%, pays Rs 12

Chennai, June 6 Karur Vysya Bank has reported a 33 per cent rise in its net profit for the fourth quarter of 2007-08 — to Rs 70 crore from Rs 53 crore in the corresponding period of last year.

Further, as its net profit for the full year crossed the Rs 200-crore mark for the first time , the board has recommended an enhanced dividend of Rs 12 a share (120 per cent). The bank paid Rs 10 per cent a share for 2006-07.

The net profit for 2006-07 included Rs 23 crore - profit on sale of shares of Bharat Overseas Bank to Indian Overseas Bank. It also included Rs 5 crore of interest payment from the RBI on the CRR balances. Besides, last year, KVB had to contend with a 10 per cent rise in wage bill. Factoring these, the profit made last year was better earned. Addressing a press conference here, the bank’s Managing Director and CEO, Mr P. T. Kuppuswamy, said last year was the fifth year in succession that the bank was giving a dividend of 100 per cent.

For the current year, the bank expects a 30 per cent growth in advances. With a capital adequacy of 12.58 per cent, retained profits and a huge headroom to raise long term debt (Tier-II capital), KVB does not expect to need to access the market for equity funds.

Mr Kuppuswamy said that the bank would receive around Rs 50 crore from the Government of India for waiving farm loans.

This would bring down non performing loans by Rs 20 crore.

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