A sharp jump in provisions, especially towards bad loans, dragged Karur Vysya Bank’s first quarter net profit down to ₹46 crore against ₹148 crore in the year-ago period.
Net interest income (difference between interest earned and interest expended) increased by 9 per cent to ₹584 crore (₹538 crore in the year-ago quarter). Other income rose 8 per cent to ₹255 crore (₹236 crore).
Net interest margin declined to 3.65 per cent in the reporting quarter against 3.76 per cent in the year-ago quarter.
Provisions towards bad loans jumped 65 per cent to ₹378 crore in the reporting quarter against ₹229 crore in the year-ago period.
During the reporting quarter, gross non-performing assets (GNPAs) increased by ₹548 crore to stand at ₹3,563 crore as of June-end 2018. GNPAs rose to 7.44 per cent of gross advances against 6.56 per cent in the preceding quarter.
As of June-end 2018, total deposits increased 5 per cent year-on-year to ₹57,554 crore. Low-cost CASA (current account, savings account) deposits improved to 30 per cent of the total deposits against 29 per cent in the year-ago quarter.
As of June-end 2018, gross advances were up 13 per cent year-on-year to ₹47,886 crore on the back of healthy growth in retail and commercial advances.
Capital adequacy ratio declined to 14.08 per cent as of June-end 2018 against 14.43 per cent as of March-end 2018.