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Rising NPA level is a matter of concern, but the bank has systems in place and the ability to generate income, said Karur Vysya Bank’s Chief Executive and Managing Director K Venkataraman.
Speaking to this correspondent from the bank’s headquarter in Karur, he conceded that both the gross and net NPA levels had shot up from 0.82 per cent and 0.41 per cent a year ago to 1.85 per cent and 0.78 per cent respectively at the end of the just ended fiscal.
“We have done better compared to last year. Our net profit during the fourth quarter (March 2015) was higher at ₹137.83 crore compared to ₹119.59 crore during the corresponding quarter of the previous fiscal. But the economy has further slowed. The demand has been falling and companies are finding it difficult to generate cash. However, we are convinced that this is only a temporary issue and things will eventually look up,” he said.
The bank’s total income at the end of the March 2015 quarter rose to ₹1,507.61 crore against ₹1,468.45 crore during the January – March quarter of 2014 and its operating profit (before provisions and contingencies) was also higher at ₹260 crore (₹209.29 crore).
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