Karur Vysya Bank’s net profit in the second quarter of this fiscal rose 57 per cent to ₹142.22 crore from ₹90 crore in the corresponding quarter last year. While other income jumped 51 per cent to ₹205.74 crore (₹135.96 crore in the year-ago period), net interest income rose 30 per cent to ₹437.42 crore (₹337.42 crore).
The bank’s gross and net NPAs (non-performing assets) rose to 1.96 per cent (1.36 per cent) and 0.96 per cent (0.59 per cent), respectively.
K Venkatraman, Chief Executive, KVB, said: “This is because it (slippage) was particularly high during the second half of the previous fiscal. It is trending down now and, in my view, the provisions also should come down. We are also more aggressive on recoveries.”
He pointed out that high depreciation provision of about ₹200 crore in 2013-14 had pushed down the bank’s profits then, notwithstanding the high slippages. The bank has maintained the provision-coverage ratio at 75 per cent.
“There is a slight pick up in credit, but not significant enough. Enquiries have started coming in, but then, this is the busy season. The third quarter will give some indication and this, in turn, will help drive profits up,” he added.
As it marches towards its centenary in 2016, Venkatraman is quite confident that the bank would be in a much better position.