Private sector Karur Vysya Bank today reported a 10.2 per cent rise in its net profit at Rs 134.58 crore for the quarter ended June.
It had posted a net profit of Rs 122.07 crore in the same period of the last fiscal.
Total income rose by 3.8 per cent in the first quarter of the 2015-16 fiscal to Rs 1,518.50 crore from Rs 1,462.44 crore in the corresponding period of the last fiscal, the bank said in a filing on the BSE.
However, the asset quality of the bank further slipped during the quarter with gross non-performing assets (NPAs) rising to 1.91 per cent of gross advances in Q1 of FY16 as against 1.3 per cent a year ago.
Likewise, net NPAs or bad loans also moved up to 0.88 per cent from 0.53 per cent in the first quarter of 2014-15.
The rise in NPAs resulted in a substantial increase in provisions and contingencies to Rs 117.65 crore during the first quarter of this fiscal from Rs 86.42 crore a year ago.
Also, the bank’s tax expenses rose multi-fold at Rs 43.50 crore from Rs 5 crore in the year-ago period. It also made a provision of Rs 32.45 crore towards final balance of wage arrears, which was effective from November 2012.
South India-based Karur Vysya Bank’s scrips closed 0.71 per cent down at Rs 477 on the BSE today.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.