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Karur Vysya Bank has reported an 82 per cent jump in net profit at the end of the second quarter of this fiscal when compared to the corresponding quarter of the previous year.
The bank’s net profit rose to ₹115 crore, up from ₹63 crore during Q2 of FY20. Operating profit was up 4 per cent at ₹449 crore (₹431 crore), net interest income improved marginally to ₹601 crore, and non-interest income was almost flat at ₹272 crore.
The net profit at the end of the first half of the current fiscal stood at ₹220 crore (₹136 crore) and the operating profit at ₹923 crore (₹876 crore). Other income during the first half rose by 7.5 per cent to ₹589 crore.
Covid provisioning
KVB’s Managing Director B Ramesh Babu told BusinessLine that the bank has made adequate provisioning for Covid to ensure that the forthcoming quarters are not badly impacted.
“We are also closely monitoring the moratorium accounts and following up on the recovery front. The flow of request for restructuring of accounts has not been great though,” he added.
Net NPA dropped to 2.99 per cent to ₹1,428 crore as of September-end from a high of 4.50 per cent a year ago. Gross NPA also improved marginally by 96 basis points to 7.93 per cent to ₹3,998 crore (₹4,391 crore).
Provision coverage ratio stood at 75.19 per cent.
“Low cost of deposits, treasury gains and lower provisioning (corporate loan exposure has to a large extent been curtailed and the hit also has not been too large) helped improve the bank’s performance,” said Babu.
The bank’s total business as of September-end stood at ₹1,11,530 crore, with advances at ₹50,408 crore and deposits at ₹61,122 crore.
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