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Karur Vysya Bank has reported a 25 per cent growth in net profit for the quarter ended June 2012-13 compared to the corresponding year-ago period.
The bank’s operating profit grew 22.64 per cent and net interest income, by 23.9 per cent.
KVB’s deposits growth is at over 30 per cent and advances, close to 33 per cent.
Gross NPAs (non-performing assets) rose marginally to 1.53 per cent (1.48 per cent), and net NPA to 0.38 per cent (0.21 per cent).
“The growth — both top-line and bottomline — has been on expected lines. The asset quality has, no doubt, been under pressure and I am expecting this to continue for some more time,” said Mr K. Venkataraman, Managing Director.
He said that the bank would look at ways to reduce cost of funds. “Liquidity is not a constraint though,” he added.
On the rising NPAs, he said “many of the accounts have already been restructured, more so, for technical reasons when the Technology Upgradation Scheme (for the textile industry) was discontinued for some time. Large accounts under consortium advances are opting for corporate debt restructure.”
KVB’s exposure to the textile industry, at around 6 per cent, is said to be higher than to other sectors.
On the bank’s exposure to power sector, he said “it’s not much, but a couple of accounts have come for restructuring.”
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