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Karur Vysya Bank reported strong double-digit growth in net profit and an improvement in asset quality during the first quarter of the current fiscal.
The old private sector bank reported a 57 per cent increase in net profit at ₹359 crore for quarter compared to ₹229 crore in the year-ago quarter, according to a statement.
The bank’s operating profit increased to ₹648 crore (₹475 crore), an increase of 36 per cent.
Net interest income grew 20 per cent to ₹897 crore (₹746 crore). The net interest margin was at 4.19 per cent, up from 3.85 per cent a year ago. Non-interest income grew 67 per cent to ₹333 crore (₹199 crore).
Operating expenses were higher at ₹581 crore (₹470 crore). Total expenditure (excluding provisions and contingencies) stood at ₹1,568 crore (₹1,197 crore). NPA provision was lower at ₹101 crore (₹140 crore). Slippages were also lower at ₹30 crore (₹61 crore).
Gross NPA dropped significantly to 1.99 per cent during the quarter as compared to 5.28 per cent a year ago. GNPA stood at 2.27 per cent as of March 31, 2023. Net NPA fell to 0.59 per cent compared to 1.93 per cent in the year-ago quarter and 0.74 per cent in March 2023 quarter.
Total business
“We have been able to continue to demonstrate our consistent performance in terms of growth, profitability, and asset quality for the first quarter ended June 30, 2023. Our total business crossed ₹1,47,671 crore. The momentum would be carried for the rest of the quarters of this fiscal,” Ramesh Babu B, Managing Director & CEO, Karur Vysya Bank, said.
Total deposits grew 14 per cent to ₹80,715 crore compared to ₹70,961 crore a year ago. CASA’s share declined to 33 per cent from 37 per cent a year ago. CASA deposits grew marginally to ₹26,549 crore (₹25,916 crore a year ago).
Gross advances also increased by 14 per cent Y-o-Y to ₹66,956 crore compared to ₹58,890 crore a year ago. Advances in agriculture, retail (personal banking), commercial and corporate segments grew 18 per cent (at ₹15,646 crore), 18 per cent (₹15,644 crore), 22 per cent (₹22,677 crore) and 7 per cent (₹14,671 crore) respectively.
The RBI has approved the re-appointment of B Ramesh Babu, Managing Director and CEO of the Bank, for the second term of three years with effect from July 29, 2023.
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