Karur Vysya Bank (KVB) on Friday posted a 51 per cent growth in net profit for the second quarter at ₹250.23 crore. The Tamil Nadu-based lender posted a net profit of ₹165.45 crore for the same quarter in the previous fiscal.
The operating profit of the bank, on a year-on-year (YoY) basis, grew over 52 per cent to ₹572.32 crore (₹375.4 crore) during Q2 FY23. The lender’s interest income grew over 7 per cent to ₹1,579.48 crore (₹1,473.53 crore) during this period.
KVB’s total deposits grew over 13 per cent to ₹73,614 crore at the end of the September 2022 quarter as against ₹65,410 crore in the same quarter last fiscal. The bank said its current account savings account (CASA) portfolio and retail term deposits were the major growth drivers.
Asset quality
The bank also displayed a significant improvement in asset quality in the latest quarter. KVB’s gross non-performing assets (GNPA) as a percentage of gross advances fell to 3.97 per cent in the September 2022 quarter as against 7.38 per cent in the year-ago quarter. Net NPA also declined 1.36 per cent (from 2.99 per cent) during this period.
The lender’s gross advances grew over 15 per cent to ₹61,846 crore (₹53,850 crore) while its total business as of September 2022 stood at ₹1,35,460 crore, growing at 13.58 per cent YoY.