Money & Banking

KVB Q4 profit up 18%

LN Revathy Coimbatore | Updated on May 16, 2019 Published on May 16, 2019

The net profit of Karur Vysya Bank rose 18 per cent to ₹60 crore at the end of the fourth quarter of 2019, compared to ₹50.56 crore in the corresponding quarter of the previous fiscal.

While the bank’s total income grew by ₹46 crore to ₹1,746.04 crore (₹1,699.53 crore), total expenditure was higher by ₹61.45 crore at ₹1,281.27 crore (₹1,219.82 crore), resulting in a drop in operating profit at ₹464.77 crore (₹479.71 crore).

PR Seshadri, Managing Director and CEO, said the bank has started showing strong revenue momentum – net interest margin (NIM) has risen by 21 basis points to 3.88 per cent, and the digital product suite is in place.

“The journey (digital exercise) started almost 18 months back. All retail loans are now fully digital, and we have completed digitising the business banking bouquet as well.”

“CASA has been the business-driver, with the average CASA balance growing at 10 per cent,” Seshadri told BusinessLine.

Gross and net NPAs rose to 8.79 per cent and 4.98 per cent, against 6.56 per cent and 4.16 per cent, respectively.

When asked about NPAs, Seshadri said: “KVB is well-poised for growth, going forward, as I believe that we have reached the tail-end of our legacy issues, which were impacting growth. The environment, too, was not easy to operate from a credit perspective,” he added.

Total business increased to ₹1.10-lakh crore, registering a year-on-year growth of 7 per cent, with total advances at ₹50,616 crore and deposits at ₹59,868 crore. The board has proposed a dividend of ₹0.60 per equity share of face value ₹2 each for 2018-19.

Published on May 16, 2019
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