Karur Vysya Bank's first quarter net profit rose 38 per cent to Rs 116.70 crore against Rs 84.48 crore during the corresponding quarter of the earlier fiscal. The bank's Chief Executive and Managing Director, Mr K. Venkataraman, perceives that the bank has done reasonably well in the first quarter
Operating profit was up 27 per cent at Rs 165.26 crore (Rs 130 crore). Its net interest income also increased by 20 per cent to Rs 205 crore (Rs 170.63 crore) and total income improved 41 per cent to Rs 768.72 crore (Rs 544.27 crore).
While the yield on advances improved from 11 per cent to 12.35 per cent, the cost of deposits rose to 7.8 per cent from 6.5 per cent.
NIM stood at 3.18 per cent. While the total deposits increased by 24 per cent to Rs 25,178 crore (Rs 20,274 crore), advances growth was higher at 30.5 per cent to reach Rs 18,526 crore (Rs 14,191 crore).
Gross NPA fell to 1.48 per cent from 1.67, while net NPA stood at 0.21 per cent.
To a query on rate hike, the KVB chief said the 50 bps increase was quite unexpected and the bank would take a call on increasing its rate soon. ‘Our base rate is 10.5 per cent at present,' he said.