Money & Banking

Karur Vysya Bank net rises 23%

| Updated on: May 20, 2011
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Karur Vysya Bank's net profit jumped 23.7 per cent to Rs 415.59 crore for the fiscal ended March 2011 against Rs 336.03 crore the previous year.

Bank sources say that this is the first time in the history of this 96-year old institution that the net profit crossed Rs 400 crore and that too after providing for pension and gratuity and considering the increase in the savings bank interest rate.

The board has recommended a 120 per cent dividend (Rs 12/share), for the fourth year in a row.

The bank's operating profit grew 30 per cent to Rs 600.58 crore (Rs 463.22 crore).

The Chief Executive and Managing Director, Mr P.T. Kuppuswamy, attributes the 35.75 per cent increase in its net interest income to good growth in advances and investments and improved net interest margin.

Its net interest income stood at Rs 766.85 crore (Rs 564.90 crore) and NIM increased to 3.39 per cent (3.23 per cent). Yield on advances for the year ended March 2011 fell to 11.22 per cent (11.43 per cent) while cost of funds dipped to 6.63 per cent from 7.08 per cent the previous year.

The total business rose by 30 per cent to Rs 42,774.26 crore (Rs 32,946.85 crore), with deposits accounting for Rs 24,721.85 crore (Rs 19,271.85 crore) of the total business and the remaining Rs 18,052.41 crore (Rs 13,675 crore) of advances.

CASA grew by 27 per cent to Rs 5,755.32 crore.

The ratio of gross NPA to gross advances dipped to 1.26 per cent (1.72 per cent), while the net NPA to 0.07 per cent (0.23 per cent).

“Our provision coverage is sufficient at 94 per cent against the stipulated 70 per cent,” he said.

The bank augmented rights issue in the ratio 2:5 and the application money of Rs 75 has been fully received. This helped strengthen the CRAR of the bank, the Chief Executive said.

The bank, which is marching towards its centenary year in 2016 is gearing up on all fronts, shedding its image of an old private bank to that of a technology driven player.

Mr Kuppuswamy said that nearly 40 per cent of the bank's customers were less than 35 years of age.

Published on May 20, 2011

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